APN News and Media shares are in a trading halt ahead of an announcement by the company on the future of its New Zealand business.
APN told the Australian Securities Exchange on Monday the halt concerned "a potential material transaction" in relation to the New Zealand business, NZME.
The move follows a media report that APN could spin off the Kiwi business after abandoning an initial public offering in February due to a weak advertising market.
NZME owns the New Zealand Herald newspaper and operates The Radio Network.
It posted a three per cent decline in revenue in calendar 2015, with advertising from its publishing division down four per cent and circulation revenue declining five per cent.
On Monday The Australian newspaper, owned by major APN shareholder News Corp, reported that APN was prepared to launch a $200 million-plus capital raising alongside a demerger of its New Zealand assets.
The newspaper also reported News Corp was "said to be circling" APN's sale of its regional and community newspapers, which includes The Toowoomba Chronicle, Rockhampton's The Morning Bulletin, Lismore's The Northern Star and Grafton's The Daily Examiner.
APN put its 100-plus Queensland and NSW regional and community newspapers and websites up for sale in February.
It reported a $10.2 million FY2015 loss due to a $50.8 million charge relating to its struggling regional news business.
The company has said it wants to focus on growing its more successful businesses, the Australian Radio Network (ARN) and its trans-Tasman outdoor advertising business Adshel.
ARN's radio stations include KIIS 1065 Sydney, KIIS 101.1 Melbourne, 97.3 Brisbane, Mix102.3 Adelaide and Perth's 96FM, while Adshel provides advertising space on static and digital billboards.
APN is expected to update the market regarding its New Zealand business at its annual general meeting in Sydney on Wednesday.
The shares last traded at 63 cents at Friday's close.
