15/05/2008

The price of shares in Johnston Press - the publisher of The Scotsman - fell by 20.5p yesterday, to 115.25p, following news it was seeking to raise £212 million, partly to offset declining advertising revenue.

Yesterday, the group announced that - subject to shareholder approval, at the end of this month - a Malaysian company, with extensive global media interests, was taking a 20 per cent stake. 

The Usaha Tegas investment vehicle - owned by billionaire, Ananda Krishnan - is expected to buy £43 million worth of shares belonging to the Johnston family, taking their stake in the company from 19.5 per cent to eight.

Add the purchase of new shares and them exercising their right to purchase one share for every one they own, the total spend by by Usaha Tegas will be £120 million.

The rights issue price is 53p.

And as reported in allmediascotland.com yesterday, the move was done partly because of fears the company would be unable to meet its banking covenants.

* Send your Scottish media news and gossip, in the strictest confidence, to  info@allmediascotland.com