Sir Anthony O’Reilly is set to leave INM
Independent News & Media’s long-running chief executive Sir Anthony O’Reilly will step down on May 7 and be replaced by his son, Gavin O’Reilly.
O’Reilly has announced plans to retire as chief executive and as a director of the board of the Independent owner in two months time, on his 73rd birthday.
He is currently the largest shareholder in INM with 28.5% and has been a massive driving force behind the company for the past 36 years – although he remains a fairly controversial figure, who has been involved in a bitter row with fellow INM shareholder Denis O’Brien.
His son, Gavin, who is currently chief operating officer at INM will step up to the chief-executive role with immediate effect.
The move is reportedly designed to help INM out of its financial difficulties – the company’s share price has continued to decline on the Dublin stock exchange – it closed at just 10 cents yesterday, down from a year high of €2.43.
However, at 10am this morning, INM’s share went up by 42% from last night’s close to 14.5 cents, which gives the company a market capitalisation of €125.94 million.
Gavin O’Reilly will be the only O’Reilly family member to remain on the board after today’s shakeup at INM, which saw two other family members step down along with Sir Anthony.
The move is thought to of pleased O’Brien, a 25% shareholder, who claimed that the board had too many allied to O’Reilly.
Speaking on Irish Radio this morning, Gavin O’Reilly, said: “The new board members are all very well known and respected and will be working on the furtherance of the plan to put to market on January 26.
“What you have seen today is a win win for all shareholders,” he added.
INM bankers are thought to of forced the move ahead of the €200 million bond payment, which is due in May.
However, Anthony O’Reilly will still remain the largest shareholder of the group, which is expected to see its board reduced from 17 to 10 members over the next three months.
Anthony O’Reilly said: “It has been more than three decades since I first became involved with Independent and in that time it has been my pleasure to have worked with a range of highly talented and hugely committed directors and colleagues. My appreciation of them is undiminished by time.
“Together, we have expanded this Irish newspaper group and enshrined a fiercely independent editorial policy that is widely respected across the world. As the largest shareholder, I will continue to support their legacy and this wonderful group in the furtherance of its strategy.”
INM also confirmed that it will issue its preliminary 2008 results on April 24.
The group has faced turbulent times recently, with its market value drastically down from £760 million to £36 million in the last 18 months.
INM also has a £178 million debt payment hanging over it.
News of Sir Anthony O’Reilly’s retirement comes just a day after the INM announced plans to make compulsory redundancies (see Independent to make compulsory redundancies).
The Independent plans to make 60 journalists redundant out of a total of 90 job losses, and will impose compulsory redundancies if not enough volunteers come forward.
The Independent suffered a relatively large year on year decline of 18.5% in the last ABC release (for February 2008) – leaving its circulation at under 206,000 copies (see ABC National Newspaper Round-Up: February 2009).