INM shareholders vote against O’Brien’s resolutions

Independent News & Media shareholders have voted against Denis O’Brien’s resolutions in an emergency meeting held earlier today.

Nearly two thirds of votes went against the rebel shareholder’s proposals to remove INM’s current chairman Brian Hillery and senior non-executive director Baroness Jay.

INM claim the proposal was rejected by an overwhelming majority of investors outside the two main shareholding blocks that are controlled by O’Brien and Sir Tony O’Reilly, who currently hold a 26% and 28.5% stake respectively.

O’Brien called for the company to hold today’s EGM, insisting that shareholders vote on his alternative rescue plan.

He had hoped the INM board would agree to his proposal, which involved selling off the group’s UK Independent titles and closing its London offices.

However, the board sided with O’Reilly’s restructuring plan in September and today urged INM shareholders to vote against O’Brien’s resolutions.

O’Reilly’s restructuring proposal will aim to reduce the company’s debt by €350 million by selling off the company’s South African ad business INM Outdoor, reducing O’Reilly and O’Brien’s stakes,  a debt-for-equity swap and a rights issue.

Two further EGMs have been called to give shareholders the chance to vote on the shares issue and finalise the debt-for-equity swap.

One more is expected after that to authorise a rights issue.

INM has agreed another extension to its financial standstill agreement with bondholders, which will now run until 23 December, to give the board a chance to complete the refinancing proceedings.