INM in €45m printing deal

INDEPENDENT News and Media (INM) has signed a lucrative £40 million (€45m) deal to take on the printing of the Irish editions of two of the biggest selling British daily newspapers.

INM’s Newry-based printing plant will produce all copies of the Daily Telegraph distributed on the island of Ireland for the next 15 years; while the group’s Belfast Telegraph print plant will take on the production of the Daily Mirror for the next seven years.

Combined, the two contracts will make Northern Ireland one of the single biggest producers of daily newspapers in Europe.

The deals represent two of the longest print agreements ever signed in the region and have been made possible by an INM investment strategy which has seen more than £50m spent on new presses in both centres.

This is a rare piece of upbeat news concerning INM of late and, indeed, coincided with the latest chapter in the unfolding hostilities between top management and significant shareholder, Denis O’Brien.

Mr O’Brien has made a further resolution request to his previous call for an extraordinary general meeting — made earlier this month.

Two weeks ago, he called for a meeting to block the sale of INM’s South African-based INM Outdoor advertising asset, to vote on the disposal of the group’s two London-based newspapers — the Independent and Independent on Sunday — and to make further changes to the board, including forcing the resignation of chairman, Brian Hillery.

His latest call is to allow shareholders vote on INM’s future direction and decisions and to stop its board of directors allotting and issuing shares.

The request follows on from speculation that INM may be about to seek agreement on the repayment of its overdue €200m bond by offering bondholders/lenders an equity deal.

INM said last night that the authority for directors to allot “relevant securities” had already been passed by shareholders and the new board, which includes three of Mr O’Brien’s representatives.