Shareholders of newspaper and radio group APN have overwhelmingly supported a demerger of its New Zealand business, paving the way for a merger with rival Fairfax across the Tasman.
At a meeting in Sydney, 99.98 per cent of shareholders voted to demerge the NZME business, which includes The New Zealand Herald newspaper, magazines, websites and radio stations.
Chief executive Ciaran Davis told the meeting the company wants to focus on the growth industries of radio and outdoor advertising.
"A demerger from NZME gives us the capital flexibility to invest in these businesses separately and independently, allowing them to succeed in their individual markets," he said.
APN raised $182 million in an equity in May to help reduce its debt and fund the demerger.
It will now complete a one-for-seven share consolidation by June 22, with shareholders to receive NZME shares on a one-for-one basis.
NZME will then pursue a merger with rival Fairfax New Zealand.
Fairfax operates the largest print media network in New Zealand, including daily and weekly newspapers such as The Dominion Post, magazines, websites and community publications.
Both NZ companies have filed an application to merge their businesses with the country's Commerce Commission, with a decision due on August 22.
APN News & Media shares dropped one cent to 63 cents while Fairfax shares gained half a cent to 88.5 cents.
