Entrepreneurs Denis O & Brien and Dermot Desmond sold most of their combined 45% stake in Independent News & Media (INM) to a Belgian company that said it agreed to take over the media company on Tuesday.
Following this agreement, Mediahuis, which owns newspapers in Belgium and the Netherlands, has a 27% stake in INM, effectively preventing a competing bidder from taking over a similar offer.
Mediahuis paid EUR 25.2 million and earned more than half of the 29.88 percent share of Brian's 10.5 percent per share, which crystallized the multi-million loss on its investment. He spent an estimated EUR 500 million in the group. It also paid nearly EUR 12.7 million for purchasing more than half of Mr Desmond's 15% stake.
Both men together sold 26% of INM to Mediahuis, whose chairman already owned 1% of the Dublin-based group.
The report appeared shortly after Michael Doorly, CEO of Independent News & Media (INM), at the Annual General Meeting (AGM), told shareholders that the company was open to competitive offers for the business, based on a cash offer of 145, EUR 6 million. a group of a Belgian company Tuesday morning.
Mediahuis seeks to execute the transaction through a so-called arrangement system that requires the shareholders' approval of at least 75% of the value of INM's shares. Subject to receiving such support at the Extraordinary General Meeting and to the needy The approval of the High Court, the Belgian company could then force shareholders to sell them their shares.
On Tuesday Tuesday at INM, the board of directors, including Mr. Doorly and President Murdoch MacLennan, asked questions from angry shareholders who criticized Tuesday's offer
Agmu investors punished the board's decision to recommend 10.5 cents for Mediahuis' action offer.
There was applause when one investor described the offer as "buttons" because INM is profitable and has nearly 90 million euros in cash on its balance sheet, which Mediahuis would effectively get business for only 56 million euros.
One shareholder, Colm Moore, also pointed to an unrecognized tax asset in the INM's balance sheet, which he believes could have a European buyer worth nearly EUR 100 million.
Another shareholder, Donald Pratt, said he personally held double the shares of the board, and said he was "insane" to recommend the offer effectively only twice a year.
Mr. MacClennan confirmed to shareholders that other potential bidders circulate INM, but insisted that Mediahuis's offer was the only one on the table.
“We didn't sell the company. Mediahuis made an offer, "he said. “It's the best offer we have and the timing is right. They were different [bidders] is the best solution for shareholders. "