INM shareholders vote in favour of a rights issue

Independent News & Media has secured shareholder support to complete its financial restructuring plan.

Investors in the Irish-owned media company voted in favour of all the resolutions at two EGMs in Dublin yesterday, which completes the final stage of the group’s restructuring.

More than 83% of shareholders backed INM’s planned rights issue to raise funds to pay off its €200 million bond, according to reports.

The first stage of the Independent-owner’s rescue plan involved a debt for equity swap, which meant that bondholders gained a 46% stake of the company.

As a result, INM’s largest shareholder Sir Tony O’Reilly saw his share significantly reduced to 15% from 28.5%, while rebel shareholder Denis O’Brien’s share has been cut to 14.2% from 26%.

INM shareholders also approved the proposed sale of its South African ad business INM Outdoor, which will be used to reduce the publisher’s debt.

In addition, INM announced that Lothar Lanz was joining the company as a non-executive director and Kenneth Clarke, the shadow business secretary was retiring at the end of December.