Independent Newspapers In 57m Nz Deal

Tony O'Reilly's Independent Newspapers of Ireland on Monday embarked on its biggest deal "� a I£442 million (£457 million) offer for the 55 per cent of Wilson and Horton, the Auckland-based newspaper and magazine group which it does not already own.

Last year the Irish group paid NZ$280 million (£125 million) to Brierley Investments for a 28 per cent stake in Wilson and Horton, which publishes the country's biggest circulation paper, The New Zealand Herald. Following additional purchases, the Irish group's stake is now 45.15 per cent.

This puts us into a different league and we are very happy about that,'' said Brendan Hopkins, the Independent News-papers director responsible for the international part of the business, which now includes media interests in South Africa, France and Australia.

 

John Meagher, deputy chairman of Independent Newspapers, said his company "� which also recently paid NZ$86 million to buy the commercial radio network Radio News Zealand "� was particularly attracted to the stable and progressive environment New Zeal-and had to offer''. The deal will involve a new I£400 million borrowing facility, but the company said on Monday its interest cover would remain comfortable''. The acquisition would have a marginal effect on earnings in the short term but is expected to deliver significant benefits thereafter''.

The offer is being made by Independent Press Communications, a wholly-owned subsidiary of the Dublin media group. IPC is offering NZ$10.50 a share in cash, compared with the closing price of NZ$9.70 yesterday.

IPC said it would make both a stand in the market and a written offer for further shares in October. Shareholders could opt to reinvest the cash in an offering of NZ$320 million of cumulative exchan-geable preference shares. These shares can be converted in seven years' time into ordinary shares in IPC's parent company on a one for one basis.