INM sets 7c price for new shares in final part of fundraising plan

21 November 2013 07:38

19 0

INM sets 7c price for new shares in final part of fundraising plan

The company is raising €40m as part of a restructuing which will slash the media company's debt to around €118m.

Details of the share placing and open offer includes the issue of 614,285,714 new shares which will begin trading on December 18 subject to approval at an extraordinary general meeting of shareholders on December 16.

INM said today the 7c price represents a premium of 17.8pc to the average share price in the period since April 26 when the restructuring with lenders was first announced and a 30pc discount compared with November 15 - the last trading day before details of the placing/offer and participation of shareholders was released.

Two of the publisher's biggest shareholders have already committed to buying shares.

Telecoms billionaire Denis O'Brien will maintain his stake at 29.9pc when the placement ends while financier Dermot Desmond said he expects to increase his stake to 15pc from 6.4pc.

In the share placing/offer - €30.2m will be raised through the placement of 430,812,954 new ordinary shares while €12.8m will be raised through a 1 for three placing and open offer resulting in the issue of 183,472,760 shares.

Vincent Crowley, chief executive at INM said today: "The capital raise will complete a complex, multi-stage restructuring programme agreed with our lenders and implemented with a wide range of stakeholders.

Thanking shareholders, lenders and staff Mr Crowley added: "INM is a company with excellent print and digital products, loyal readers and advertisers and this restructuring provides the financial stablity and flexibility to implement our strategy and to continue the process of rebuilding shareholder value."

Shares in INM have gained significantly since details of the offer emerged.

Source: independent.ie

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