APN News & Media has sold its regional newspaper business to its own shareholder, News Corp, for $36.6 million. However, major shareholders have expressed surprised at the price, given it was only two times annual earnings.

APN's shares reached $4.90 on the news and closed at $4.75. APN recently completed a share consolidation that reduced the shares on the market from 1.3 billion to 196 million. The shares were this week using a temporary ticker code APNDA, and would revert to APN on June 23.

APN chief Ciaran Davis said the remaining radio and outdoor media were terrific for advertisers. Credit:Louie Douvis

But it remains to be seen if shareholders approve the deal, with the managing director of 16 per cent shareholder, investment firm Allan Gray, saying he was surprised at the bargain price.

"I am very surprised at the price. It does seem very low," Simon Mawhinney told BusinessDay.