Newspaper group seeking cash boost in rights issue
Regional newspaper group Johnston Press announced plans for a £212 million cash call to investors as it responds to an advertising slowdown.
The firm, which publishes the Evening Courier and Yorkshire Post, made the request to shareholders as it unveiled a 7.1 per cent drop in like-for-like advertising revenues in the 17 weeks to April 26.
Johnston's shares fell 17 per cent on news of the discounted rights issue, which is offering shareholders one new share for each share held, at 53p each – a 61 per cent discount.
Johnston, which owns 18 daily newspapers and 300 weeklies, also unveiled plans to sell a 20 per cent stake in the business to Malaysian investment firm Usaha Tegas, which specialises in media, broadcasting and communications sectors.
Usaha Tegas will buy half in the form of a share subscription and the rest from the Johnston group's family trusts and shareholdings.
The full article contains 158 words and appears in n/a newspaper.
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Last Updated:
15 May 2008 9:00 AM
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Source:
n/a
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Location:
Halifax
