O’Reilly hints at board changes at Independent Media

INDEPENDENT News & Media (INM) chief executive Gavin O’Reilly has hinted that a number of board changes may happen in the not-too-distant future, in the wake of the group finally concluding the terms of its financial restructuring project.

Fri, 27 Nov, 2009 - 00:00

Geoff Percival

Speaking after yesterday’s extraordinary general meeting (EGM) – where shareholders formally approved the sale of the group’s South African-based outdoor advertising company, INM Outdoor, and gave the go-ahead for a rights issue to pay off the remainder of the debt from the €200 million bond the business owed – Mr O’Reilly said that management was committed to carrying out “refreshments” to the board in the “next short while”.

Indeed, the group yesterday made one new board appointment – in the form of German media giant, Axel Springer AG’s chief financial officer/chief operating officer, Lothar Lanz; who has joined INM as a non-executive director. Former British Chancellor of the Exchequer Kenneth Clarke is set to retire from his post of non-executive director at the end of the year.

When asked about the involvement of Denis O’Brien’s representatives on the INM board – Paul Connolly, Lucy Gaffney and Leslie Buckley – Mr O’Reilly said that the board was united; adding that relations with Mr O’Brien, himself, are “very cordial”.

With regard to yesterday’s votes, he said that the results were a “strong endorsement” of the company from shareholders.

INM had already tentatively agreed a sale of the South African business to local player, Helios Investment Partners for about €98m. The additional sale of its interest in German price comparison website, Verivox is still expected to be finalised before the end of next month.

Earlier this year, INM sold off its Cashcade gaming website for €15.3m. No further asset disposals are likely. Yesterday’s votes – the rights issue will be formally launched next Monday – technically concludes the bond refinancing deal, which will also see bondholders gain a 46% stake in INM as part of a debt-for-equity swap.