APN News & Media will launch an equity raising to support its $268.4 million purchase of the remaining 50 per cent of the Adshel outdoor ad business.
APN, which is awaiting regulatory approval to offload its Australian print media assets to Rupert Murdoch's News Corp, said it will acquire Clear Channel Outdoor Pty Limited, whose sole asset is its 50 per cent stake in Adshel.
It expects to complete the deal on Tuesday.
APN chief executive Ciaran Davis said the acquisition "continues APN's significant transformation, placing APN in a stronger position in the Australian media industry by creating a unique proposition to deliver an integrated radio, outdoor, mobile and video offering".
"It will allow the Adshel management team to drive the strategic direction of the business."
APN will launch a fully underwritten institutional placement and entitlement offer to raise $273 million, which it will use to repay the debt it takes on to complete the deal.
Adshel operates 22,000 digital and static advertising panels in Australia and New Zealand, generating Adshel revenues of approximately $170 million and earnings of approximately $42 million in the year to June 30.
