INM to raise €43m via issue of 614 million new shares

22 November 2013 01:01

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INM to raise €43m via issue of 614 million new shares

The company's existing shares rose to the highest levels seen since September last year following the news, closing at 14 cents in Dublin last night as investors bet that the capital raising will mark a successful end to a complex deal that slashes the publisher's debts.

"This represents the last step in the group's restructuring programme," Goodbody stockbrokers analyst Rachael Cairns said.

She added that the placement "is likely to be completed successfully" because two of the company's largest shareholders have already committed to buying shares.

They are businessman Denis O'Brien and financier Dermot Desmond who have committed €29.6m to the raising. Those commitments mean that just €13.4m has to be raised from other shareholders.

INM, which publishes this newspaper, will also issue a little less than 222 million new ordinary shares to the group's banks and employees.

The €40m that will be raised by the share placement will be used to repay debt in the final phase of a year-long effort to cut core debt from about €440m at the beginning of the year to €118m.

INM said yesterday that €30.2m will be raised through a firm placement of 430 million new shares while €12.8m will be raised through a one-for-three placing and open offer through the issue of 183 million shares.

Chief executive Vincent Crowley paid tribute to the various interest groups who have contributed to the debt deal.

"I wish to thank our shareholders, lenders and staff whose support has been critical to the group's transformation," Mr Crowley said yesterday.

"INM is a company with excellent print and digital products, loyal readers and advertisers and this restructuring provides the financial stability and flexibility to implement our strategy and to continue the process of rebuilding shareholder value."

Source: independent.ie

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