INM shares soar 67pc on restructuring of board
Sir Anthony O'Reilly is standing down from his position as CEO of Independent News and Media. His son Gavin (pictured) will succeed him.
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Saturday March 14 2009
SHARES in Independent News & Media (INM) rose 67pc yesterday as the Dublin stock market reacted positively to the agreement reached by its two major shareholders.
INM shares soared after the company announced a new board structure and the appointment of Gavin O'Reilly to succeed his father, Sir Anthony O'Reilly, as chief executive officer.
Denis O'Brien, the telecoms magnate who is also the group's second largest shareholder, said after the appointment of three of his nominees to the board of directors that the changes would allow the group "to meet the challenges and avail of the many opportunities" which lie ahead.
Alignment
"The alignment of the two major shareholders in Independent News and Media is a coherent and purposeful posture, which will allow us achieve the company's aim," CEO designate Gavin O'Reilly said.
"Having the major shareholders aligned at this critical juncture is in the best interest of all our shareholders. Our priority now is to resolve the immediate refinancing for the group and continue with our programme of deleveraging.
"The board has made it very clear that we are going to deleverage this business. Our ambition is to drive the share price and deliver shareholder value," he added
Mr O'Brien said he hoped the new board would bring forward decisions "which will, in time, result in a stronger company, soundly structured to meet the challenges and avail of the many opportunities.
"In that regard I wish the new board well in their prime objective of restoring shareholder value," Mr O'Brien said.
Commenting on Sir Anthony's retirement as chief executive and appointment to the new position of President Emeritus of INM, Mr O'Reilly said he was delighted that there would be a continuing association with the creator of the modern-day Independent News and Media.
"He has planted the INM flag around the world and the relationships that he has built there will help us navigate those markets in the future. We are in a better position doing that with Tony O'Reilly lending his support," he said.
"In respect to my position as CEO designate, it's a fairly humbling position that I find myself in, with very big shoes to fill. I have the endorsement of both Tony O'Reilly and Denis O'Brien, which is pretty good -- especially when they represent 55pc of the company," he said.
Mr O'Reilly said INM were well positioned to come through the economic downturn. "In the majority of the markets, we are a market leader. The number one brand tends to outperform in tightening markets.
"We're not a one-country play -- yes, Ireland is tough; but South Africa isn't as tough, neither is Australia, and clearly neither is India. We're not dependent on one economy for our growth prospects and we have a much more resilient revenue line than other media businesses," he said. A higher proportion of INM revenues came from circulation, contract print, and distribution.
"About 35pc of our revenue has nothing to do with advertising. We've taken out a lot of costs but we're just going to have to ride out this advertising cycle," he said.
- Maeve Dineen
