Johnston Press cash call wins 97% backing

Published on Tuesday 24 June 2008 22:25

JOHNSTON Press yesterday revealed that more than 97 per cent of shareholders had backed its £170 million cash call.

Investors took up more than 311 million shares in the deeply discounted rights issue.

The company, which publishes The Scotsman, raised a total of 212m after also selling a 20 per cent stake in the business to Malaysian investment firm Usaha Tegas for 42.7m.

Deutsche Bank, which underwrote the rights issue, offloaded the unsold 8.8 million "rump" shares for 72p each on the market yesterday.

The cash injection will help JP as it battles against an advertising slowdown.

It announced the rights issue and stake sale last month as it unveiled a 7.1 per cent drop in like-for-like advertising revenues in the 17 weeks to 26 April.

Shares in the Edinburgh-based group plummeted 17 per cent after the news it was offering shareholders rights issue stock at a 61 per cent discount.

JP shares closed down 3p, or 4.17 per cent, at 69p yesterday.