Disposal of overseas assets on cards

Further disposals of overseas assets could be on the cards at Independent News & Media (INM), as the group’s revamped management team looks to cut costs, drive down debt and tackle its pension deficit.

Shareholders attending INM’s AGM in Dublin’s Citywest Hotel yesterday, were told by the outgoing board that, while no decision had been taken as yet, “clearly, the possibility of disposals would have to be looked at”.

INM’s existing non-Ireland-based operations include a 30.4% stake in Australian media group APN, and newspaper and online interests in South Africa. It was recently reported that Denis O’Brien — INM’s dominant shareholder — is keen on the South African business being sold and any freshly raised funds being used to expand further into Australia as well as India and Indonesia.

INM currently has a pension fund deficit of around €148m and net debt of nearly €428m. Chief executive Vincent Crowley told shareholders yesterday that, while the trading outlook remains challenging, management focus is firmly on cost-cutting, further debt reduction and maximising cash flow.

Mr Crowley said that initial cost-saving moves include INM switching its headquarters from Citywest to Talbot Street — where the bulk of its Irish newspaper titles are produced — the closure of its London offices and the voluntary redundancy programme at the Sunday World.

“Clearly, we recognise that debt paydown, of itself, is not a strategic objective, but it will drive shareholder returns, as value is transferred from debt to equity,” he said.

He also vowed to tackle the pension deficit over the next 12 months.