Investec takes 5.45pc stake in INM
SOUTH African investment firm Investec said yesterday it had acquired a 5.45pc stake in Independent News & Media.
Industry analysts stated the move represented a vote of confidence in Independent News & Media following a rights issue and upbeat management statements earlier this month.
Investec, which invests on behalf of a wide range of pension funds, is known as a long-term investor that often buys and holds stakes.
The London-listed South African investment bank made the announcement in a stock exchange filing yesterday.
The investment bank said it bought the stake on November 9, when shares were trading at around 58c each. The move gives the publisher of newspapers here and in Investec's home in South Africa a market value of €288m.
Investec has become the third-largest investor in Independent News & Media after long-term Irish investors Sir Anthony O'Reilly and Denis O'Brien, according to data from Bloomberg.
Other large institutional investors include Marathon Asset Management and Henderson Global.
The publisher said last week that sales have risen by 1.2pc in the year to date as advertising revenue advanced 1.7pc.
Like-for-like operating profit before exceptional items was up by about 10pc.
The company reiterated it was likely to meet market expectations that full-year group operating profit before exceptionals would be in the range of €220m-€225m.
The company recently raised €29.3m by placing 50.5 million new shares at a price of 58 cent each. The money was employed in debt restructuring to retire expensive debt.