Independent News & Media SA unit sold off

Image Caption: (L-R) Leslie Buckley, Chairman INM and Vincent Crowley, CEO INM. 

Photo courtesy: http://www.independent.ie/business/media/inm-shareholders-approve-sale-of-south-africa-assets-rights-issue-to-go-ahead-29350303.html

As part of a reported attempt to restructure its debts, the South African arm of the Independent News & Media (INMSA), held a shareholder meeting on June 17 and took a final call to sell INMSA and issue new shares, the INM announced.

The South African unit has been sold off to a Sekunjalo-led consortium, and the sale has stirred discussion on the subjects of media transformation and racial divides in South Africa, Business Day Live SA reported. 

A letter issued by the South Africa National Editors’ Forum (Sanef) said it was particularly difficult for the Independent staff to feel secure about their jobs when the identities of stakeholders forming the black-led consortium and that of the shareholders--as well as details on how the company will be funded, and by whom--were not provided until after the deal was put to a vote.

Shareholders, on the other hand, congratulated Leslie Buckley, the chairman of INM, for reaching the deal that will reduce the INM group’s debt by EUR 350mn to EUR 118 mn, the Irish Independent stated.  The agreement involves cost-saving measures like eliminating redundancies and an agreement to reduce payments from the company's pension scheme.

By: Savita V Jayaram