Independent News & Media (IN&M) has called an extraordinary meeting for November 3rd following a request for such a meeting from one of its largest shareholders, Denis O'Brien.
IN&M said it was putting just two resolutions to shareholders, relating to the chairman and the senior independent director, and said that Mr O’Brien’s proposal to block the disposal of South African advertising unit IN&M Outdoor will be subject to a separate, dedicated egm.
IN&M is hoping to raise 1.1 billion rand (approximately €98 million) from selling the South African unit and sees the disposal as a crucial part of efforts to refinance an overdue €200 million senior note.
Mr O'Brien against the sale, arguing that the business is cash generative and has growth potential in light of year's soccer World Cup.
Other proposals put forward by Mr O’Brien included the selling or closing the loss-making London Independent daily and Sunday newspapers.
In a statement today INM said it was not putting forward the remaining proposals because, even if they were approved, they would “have no legal effect”.
Mr O’Brien called for the removal of company chairman Brian Hillery and the replacement of Baroness Jay as senior independent director in a statement published earlier this month.
INM responded to this call by observing that the appointments were previously unanimously approved by its board.
INM is recommending a refusal of the proposals and says this approach is informed by its resolve to secure a consensual deal with its bondholders.
"The proposed resolutions risk damaging the trading prospects, staff morale, reputation and ultimately, the integral value of the IN&M Group," it added in a statement.
INM is seeking to secure a deal with bondholders regarding an overdue €200 million bond.