INM completes South African outdoor deal

by Isabella Piasecka, Media Week 28-Mar-08, 12:49

LONDON - Independent News & Media's Euro86.6m (£68m) acquisition of Clear Channel Outdoor's 50% stake in Clear Channel Independent, Africa's largest outdoor advertising company, has been cleared by South African regulators.

As part of the deal, INM will issue 39 million shares - a move that dilutes Irish billionaire Denis O'Brien's shareholding in the company to 21.07% from 22.15%.

The newspaper publisher yesterday declared O'Brien a 'dissident shareholder', following a series of outspoken remarks about the company by the billionaire who has steadily built up his stake in recent months.

Chief executive Anthony O'Reilly remains the largest shareholder with a 26.63% stake, down from 27.94% before today's share issue.

Approval for INM's acquisition of Clear Channel's South African arm comes as Clear Channel Communications fights to salvage an estimated $20m (£9.9m) buyout of the company by private equity firms.

On Thursday, Clear Channel secured a US court order ordering several banks that originally agreed to finance the deal not to "interfere with or thwart consummation" of the buyout.

Speculation had been mounting that the deal would collapse after private equity firms Thomas H. Lee and Bain Capital Partners reportedly failed to secure finance from six banks, including Citigroup and Royal Bank of Scotland.