Independent News and Media has announced plans to issue over 600 million new shares at seven cent in an attempt to raise €43m.

The move is the latest - and last - measure in a complex operation to restructure the firm's balance sheet and cut its debt from about €439.6m at the end of last year to €118m.

Two of the group's biggest shareholders, Denis O'Brien and Dermot Desmond, have indicated that they will take part in the capital raise to the the tune of an aggregate €29.6m.

Denis O'Brien's percentage interest in the company will remain at 29.9% while Dermot Desmond's will increase from 6.4% to 15%.

Completion of the placing is still subject to a number of conditions, including shareholder approval. INM plans to hold and EGM in December to allow shareholders vote on the issue.

INM's share price increased in recent days on rumour of this transaction - it closed at 13 cent yesterday.

“The capital raise will complete a complex, multi-stage restructuring programme agreed with our lenders and implemented with the support of a wide range of stakeholders," commented the company's chief executive Vincent Crowley.  

"INM is a company with excellent print and digital products, loyal readers and advertisers and this restructuring provides the financial stability and flexibility to implement our strategy and to continue the process of rebuilding shareholder value," he added.