Newspaper publisher Johnston Press unfolds plan to raise an extra £212m

Published on Wednesday 14 May 2008 10:37

NEWSPAPER publisher Johnston Press today unveiled plans to raise an additional £212 million through a heavily-discounted rights issue.

It said it is taking the action following a downturn in advertising and to prevent it breaching debt covenants.

The owner of the Evening News said total advertising revenues slid by 5.7 per cent in the 17 weeks to April 26, with print advertising falling 9.1 per cent, although digital advertising performed well, rising by 56.8 per cent.

Advertising performance has been hit by declines in advertising in property, employment and motoring.

Johnston Press, which is one of the UK's largest local and regional newspaper publishers, also announced that Malaysian investment firm Usaha Tegas is to take a 20 per cent stake in the company through a share subscription and the acquisition of a further ten per cent of shares from the group's family trusts.

Chief executive Tim Bowdler said: "I warmly welcome the strategic investment by Usaha Tegas in Johnston Press."