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93
APN
annual report
2011
notes to the financial statements
APN News & Media Limited and Controlled Entities
34. SUBSEQUENT EVENTS
On 23 February 2012, the Group announced that it had reached an agreement to form a joint venture with Quadrant Private Equity to
target expansion in the Outdoor advertising segment in Australia, New Zealand and Asia. The Outdoor joint venture, to retain the name
APN Outdoor, will incorporate all of APN’s wholly-owned Outdoor businesses in Australia and New Zealand as well as APN’s 50% interest
in Rainbow Premium Outdoor, in Indonesia. The transaction values APN Outdoor at $272 million on an enterprise value basis and will
generate gross cash proceeds of approximately $190 million for APN upon completion. APN’s 50% ownership in Adshel (street furniture)
and Hong Kong (Buspak and Cody) operations remain outside the new APN Outdoor joint venture.
Following formation of the joint venture the Group will account for its interest using the equity method, and recognise its 50% share of the net
assets and net profits of the venture, as it currently does for its interest in Adshel. The interests in Hong Kong will continue to be consolidated.
The businesses that will form the joint venture contributed $28.0 million to the Outdoor segment result of $38.0 million in 2011. The balance of
$10.0 million comprises the consolidated EBIT of the Hong Kong businesses and the 50% share of net profits of Adshel recognised using the
equity method.
Other than the matter described above, the Directors are not aware of any matter or circumstance that has arisen since the end of the
financial year that has significantly affected or may significantly affect the Group’s operations, the results of those operations or the Group’s
state of affairs in future financial years.
35. PARENT ENTITY FINANCIAL INFORMATION
(a) Summary financial information
The individual financial statements for the parent entity show the following aggregate amounts:
2011
$’000
2010
$’000
Balance sheet
Current assets
558
69
Total assets
1,346,250
1,255,063
Current liabilities
–
11,296
Total liabilities
214,337
138,710
Shareholders equity
Issued capital
1,074,115
1,045,999
Reserves
Share based payments reserve
5,181
5,181
Retained profits
52,617
65,173
1,131,913
1,116,353
Profit for the year
51,520
47,089
Total comprehensive income
51,520
47,089
(b) Guarantees entered into by the parent entity
The parent entity and all wholly-owned controlled entities have provided guarantees in respect of banking facilities. As at 31 December 2011,
the facilities had been drawn to the extent of $594,911,000 (2010: $656,950,000).
The parent entity and some wholly-owned controlled entities have given guarantees in respect of certain banking facilities to a maximum
of $45,000,000 (2010: $45,000,000).
(c) Contingent liabilities and contractual commitments
The parent entity did not have any contingent liabilities or contractual commitments as at 31 December 2011 or 31 December 2010.