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Johnston's raises £170m from new shares

Leading regional publisher Johnston Press has shored up its financial position by raising £170m from issuing new shares, the group announced today.

Earlier this year Johnston’s moved to tackle its debt levels by issuing more than 300 million new shares at 53p per share, as well as selling a 20pc stake in the company to a Malaysian investor.

Today the company, which publishes more than 300 regional and local papers including the Scotsman and Yorkshire Post, announced that all the shares on offer had been sold, raising just over £170m in total.

The original offer of 53p per share received a 97.25pc take up, with the remaining 2.75pc of shares sold this morning by underwriters Deutsche Bank AG at 72p a share.

Taken together with the £42.7m raised from the deal with Malaysian investment vehicle Usaha Tegas, it brings Johnston’s total refinancing package to nearly £213m.

The Johnston family’s total shareholdings were reduced from 19.5pc to 7.6pc as a result.

As reported on HoldtheFrontPage yesterday, Johnston’s chief executive Tim Bowdler has categorically denied industry suggestions that the Malaysian outfit will ultimately take a controlling interest in the company.

Mr Bowdler described the rumours, which circulated in the City last week, as “utterly without substance.”

The City appears to be judging the rights issue a success with shares in the Edinburgh-based firm up 1p to 72p last night, valuing the company at £460.6m

Mr Bowdler today told HoldtheFrontPage he was “very pleased with the outcome.”