Media giant APN has been rocked by the resignation of its Chairman, Chief Executive and three independent board members effective immediately after a shareholder revolt  regarding a proposed capital raising.

The announcement comes after the Board of Directors met earlier this week to determine whether the company should proceed with the pro-rate capital raising as disclosed late last week. The move raised the ire of the two largest shareholders, Independent News & Media and Allan Gray, who represented a combined 51 per cent of the company’s shares.

“The Departing Directors have a different view on gearing levels to the major shareholders and in light of their opposing position it is not tenable for them to continue.              At a previous Board meeting the non- INM representative Directors all unanimously stated their support for Brett Chenoweth and his strategy,” the company said in a statement.

The company announced it is currently in the process of appointing a search firm to assist in the selection of a new CEO and additional Board members.