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APN News & Media is set to take full control of its radio businesses from Americas Clear Channel and launch a capital raising of between $100 million and $150 million to fund the deal.

It could mark a transformational deal for the trans-Tasman media group under former News Corp executive Michael Miller, who has moved to tidy up the companys complex asset base and pay down debt since he took over as CEO in June.

Mr Millers predecessor, Brett Chenoweth, was ousted by major shareholders after they rejected his push for a $150 million capital raising.

The Australian Radio Network owns the KIIS station in Sydney with Sydney breakfast duo Kyle and Jackie O as well as the Classic Hits network.

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The deal, which also includes New Zealands The Radio Network, values APNs radio assets at around seven times earnings before interest, tax, depreciation and amortisation.

The deal is understood to have the backing of major shareholders, which include Independent News & Media, controlled by Irish billionaires Tony OReilly and Denis OBrien, which has a 29 per cent stake, and Allan Gray, which has 19.8 per cent.

Allan Gray chief executive Simon Marais told The Australian Financial Review in October that he would back APN to buy out the 50 per cent of the business it does not own for seven times EBITDA.

Clear Channel will offset declines elsewhere

The move to acquire Clear Channels shareholding will give APN 100 per cent ownership of a fast-growing national metropolitan radio asset, helping to offset the declines at its newspaper publishing arm, which has been hit by structural declines in print circulation and advertising revenues.

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APN takes full control of radio business from Clear Channel, starts capital raising