DUBLIN (Reuters) - Irish newspaper publisher Independent News & Media hopes to use proceeds from its bid for Australia's APN News & Media to expand into growing Asian markets but has dropped plans to move into Russia.
"We would want better comfort on the political and press freedom issues before we looked at investing in Russia again," Independent News Chief Operating Officer Gavin O'Reilly told Reuters.
"It would appear that the oligarch in the Kremlin is in control of most of them," he said of the country's media companies.
O'Reilly said "all the stars did not align perfectly" after the group last year dropped plans for an acquisition in Russia where President Vladimir Putin has faced criticism for tightening his grip over domestic media.
Independent News, which operates in Ireland, Britain, South Africa, Australia, New Zealand and India, expects to end up with just over 350 millions euros ($465.7 million) in cash if its joint bid for APN with private equity partners succeeds.
Under the terms of the deal, which has been approved by APN, Independent will reduce its stake to 35 percent from 42 percent at present.
"We'll certainly look to improve shareholder value, be it through selective acquisitions, further dividend increases or even maybe a share buyback," Chief Financial Officer (CFO) Donal Buggy said in the joint telephone interview.
O'Reilly stressed, however, that the company's preferred use for its capital was expanding its presence in high-growth markets.
"I think you can take it we want to put our money to work in markets like India," he said pointing to the company's stake in Jagran Prakashan Ltd, publisher of India's largest selling daily newspaper.
"I suppose our immediate focus is more skewed towards the Indian subcontinent and parts of Asia," he said of the likely geographical focus of any expansion, adding that markets like Indonesia looked particularly attractive.
The company currently has no plans to join the rush to invest in China, O'Reilly said, adding that the market there was of greater interest to manufacturing companies.
"I've yet to meet anybody in a services business who is making a real success in China," he said.
In terms of the overall group's prospects for 2007, CFO Buggy said he was "confident of achieving" market expectations that underlying earnings per share (EPS) would rise to 19.2 cents from 17.4 cents last year.
