The chairman, CEO and three other APN News & Media directors have resigned after a disagreement over capital raising with the firm's major shareholder, Independent News & Media (INM). INM will now look to install its own board.
Rapid change had been afoot since APN suspended trading on the ASX on Friday, issuing a statement that indicated trading would resume by this morning.
The resignations of Peter Hunt (chairman), Brett Chenoweth (CEO and MD) and directors Melinda Conrad, John Harvey and John Maasland take effect as of 9am today. Director Kevin Luscombe will retire in April as planned.
APN's directors had wanted to undertake capital raising with Macquarie capital as sole underwriter to coincide with the firm's full year results on Thursday (21 February). The plan to raise capital had been agreed by the board of directors although timing and the final decision to proceed had not been agreed, APN said in a statement.
However, in a statement INM said the firm and its major shareholder, together with Allan Gray, were opposed to capital raising at the present time. Together they represent 51% of APN's shares.
To block the move, INM requested an extraordinary general meeting to remove the directors and install two INM representatives, Vincent Crowley and Peter Connolly, plus existing APN non-executive directors Peter Cosgrove and Ted Harris. The latter is also deputy chairman. The former has been tipped as a potential new chairman.
Both companies' statements pointed out that the non-INM representative directors had unanimously supported Chenoweth and his strategy.
A search firm will be appointed to find a CEO and new board members. APN said results would be announced as planned on Thursday 21 February.
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