Future of The Independent secured
The future of UK national newspaper The Independent has been secured after its owners Independent News and Media (INM) reached an agreement over a refinancing package.
The title's future had been called into question by Denis O'Brien, the company's second largest shareholder, who believed that the loss-making title should be sold or closed to save money.
However, O'Brien was defeated in a vote on the company's future yesterday when shareholders voted to cut the company's €1.3bn (£1.2bn) debt by €350m through a debt-for-equity swap and a rights issue.
The company also confirmed that INM Outdoor, its profit-making South African advertising business, will be sold as part of a €150m disposal process.
Shareholders will exchange €123m of outstanding bonds for 732.2m new ordinary shares. In addition, INM also intends to raise up to €94m via a rights issue at five cents per share. Shareholders will retain around 52% if they take up their full entitlement.
O'Brien had pledged €100m of his own money to help cut the company's debt, in return for a larger share. However, he wanted to keep INM Outdoor, which he believed to be lucrative in the build-up to next year's Fifa 2010 World Cup. It is unclear how he will respond to the snub.
Source: www.printweek.com - News
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