Shares in INM jump by 35pc following announcement
SHARES in Independent News and Media jumped as much as 35pc today after the publisher said it will raise €40m by selling new shares before Christmas to new and existing investors.
The shares rose 3.2 cent to 13.2 cent at 1.05pm on the Dublin stock exchange, helping to cement their position as the best performing shares on the stock exchange this year.
The share placing is the last piece in a complex jigsaw puzzle that slashes the publisher's debt to around €118m.
Two of the publisher's biggest shareholders have already given a commitment to buy shares, INM said. 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.
“The proposed capital raise, intended to raise €40m net of expenses, represents the final stage of the restructuring,” the company said.
The shares will be sold in firm placement with new and existing institutional shareholders.
The share placement is the last step in chief executive Vincent Crowley’s ambitious plan to restructure INM's balance sheet. It follows deals with the publisher's main lenders to write down debt, a reduction in future pension payments to employees and cost cutting measures. Lenders will own around 11pc of the company following the deal while a staff pension scheme will own a further 5pc.
The share placement, which is a combination of firm placement and open offer, must still be approved by shareholders at a specially convened shareholder meeting.
INM owns this website and a host of titles in the Republic of Ireland as well as the 'Belfast Telegraph'.
Davy Stockbrokers will act for INM on transaction