Sir Anthony to step down as INM chief
Stepping down: Tony O'Reilly
INM (Independent News & Media) has announced that Sir Anthony O’Reilly is to step down as chief executive. The share price has performed strongly in morning trade.
Sir Anthony has been a director of the global media group since 1973.
He is to be succeeded by his son Gavin O’Reilly, who now becomes chief executive designate. The handover will take effect from May 7 of this year, on Sir Anthony’s 73rd birthday.
The move was welcomed by businessman Denis O’Brien, who has built up a 25pc stake in the company in recent years, and who has nominated three new directors to the board.
In a statement, the telecoms entrepreneur said the changes would “strongly position the group to meet the immediate financing challenges in the current economic climate”. The move comes as a deadline looms for the repayment of a €200m bond.
Speaking to RTE Radio today, Gavin O’Reilly said the news was a “triumph of common sense” and one that would be welcomed by all shareholders. “What you have seen today is a win/win for all shareholders,” said Gavin O’Reilly, who is the current chief operating officer at INM.
The company’s board will also be reduced from 17 members to 10. The three new O’Brien-nominated directors have been named as Digicel’s Leslie Buckley, former Esat director Lucy Gaffney, and Paul Connolly of Connolly Corporate Finance, with immediate effect.
Sir Anthony O'Reilly will become President Emeritus at INM.
The changes also see the stepping down from the board of the outgoing chief executive’s sons, Tony O'Reilly Jnr and Cameron O'Reilly. The board will now comprise Dr Brian Hillery (chairman), Gavin O'Reilly (chief executive officer), Donal Buggy (chief financial officer) and non-executive directors Ken Clarke, Baroness Margaret Jay, Brian Mulroney and Frank Murray, along with O'Brien's three nominees.
In a statement, INM point out that Sir Anthony is the largest shareholder, with a 28.5pc stake in the company. "He has been the strategic driving force behind the company for the past 36 years," the statement adds. Gavin O'Reilly has been chief operating officer for the past eight years, having joined the group in 1993.Commenting on Sir Anthony’s retirement, INM chairman Brian Hillery said: “Tony’s retirement marks one of the most remarkable executive careers in Irish history. Tony has been a significant business leader for more than 45 years and has been a key figure in the making of modern Ireland." He pointed out that when Tony first invested in a local Irish newspaper operation, in 1973, it had a turnover of €12m. He has since created a €1.5 billion worldwide communications group. “Today, thanks to Tony’s talents and efforts ... INM has operations across four continents, 22 countries – and serves over 100 million consumers every week.”
Dr Hillery paid tribute to the outgoing directors and said he was "gratified that Denis O’Brien – our second largest shareholder (c. 26%) – has written to me indicating his support both for these changes to the Board and the Company’s plans to deleverage the business."
Sir 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. 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.”
The AGM is scheduled for June 12, with Preliminary Results for 2008 being announced on April 24.
In morning trade the share price was up 57pc to 16c on the Irish stock exchange by 11am. It closed the previous day at 10c.
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