Regional media group APN News and Media is moving to sell its remaining stake in its outdoor advertising business to a private equity group.
APN says it is in talks with Quadrant Private Equity to sell its stake in APN Outdoor for $69 million, which is 7.5 times the businesses 2013 earnings.
The two parties have reached an in-principle agreement to many of the key terms of the proposed transaction but the deal has not yet been finalised and would be subject to regulatory approvals and Quadrant debt funding arrangements.
APN Outdoor has been operated as a joint venture between APN and Quadrant since May 2012.
APN chief executive Michael Miller said the transaction would be a good outcome for shareholders and could give the company flexibility to pay down debt, invest in growth or to pay future dividends.
He said the company would remain exposed to the outdoor advertising market through its stake in Adshel.
"APN is continuing as an active investor in the Australian outdoor advertising market through our 50 per cent interest in Adshel, reflecting our belief that small format will continue to be a strong segment in the outdoor market," he said.
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