O’Brien increases his stake in INM

DENIS O’BRIEN has upped his stake in Independent News & Media (INM) by nearly 5%, overtaking former chief executive Tony O’Reilly as the group’s largest individual shareholder.

It is believed the shares were acquired from Bank of Ireland, which yesterday began the process of selling certain assets and shareholdings in order to meet capital requirements.

Mr O’Brien yesterday purchased a further 169 million shares in the media group, through four separate investment vehicles, taking his total number of shares to just over 651 million. This means he now owns 18.61% of INM.

Prior to yesterday’s transaction Mr O’Brien owned a 13.8% stake.

Mr O’Reilly, for decades the group’s largest shareholder, currently owns 14.65% of the company.

Both of their stakes were diluted by about half last year as a result of the company’s rights issue and re-financing of an outstanding €200m bond, which resulted in a partial debt-for-equity deal giving bond-holders a 46.3% stake in the group.

Prior to that refinancing, Mr O’Brien held a 26% stake in the group and was locked in a power struggle with the O’Reilly family for control of the business.

While he opposed parts of the restructuring process — including the sale of INM’s outdoor advertising company in South Africa — some of Mr O’Brien’s earlier desires have since been met, most notably the recent long-awaited disposal of INM’s two loss-making London-based newspaper titles, the Independent and Independent on Sunday.

It is not known whether the bond-holders are actively looking at selling part of their stake in the group, nor whether yesterday’s transaction may spark a busy round of stake- building in the business on Mr O’Brien’s part.

A spokesperson for Mr O’Brien merely reiterated that he continues to view his investment in INM as a long-term strategy.

The group’s share price was up by more than 5% at 14c yesterday.