Metro owner buys into Johnston Press

A SCANDINAVIAN newspaper owner has taken a stake in the debt-laden publisher of the i, Johnston Press.

Custos, which owns the free Swedish title Metro, revealed in a stock exchange filing it has built a 5.1pc holding, ranking it in Johnston Press’s top six shareholders.

The move is likely to fuel speculation over the fate of Johnston Press, which is fighting for its future under the threat of a default on its £220m debt pile. Its bonds are due in 2019 and credit ratings agencies say it will not be able to refinance due to tough conditions in the local newspaper market that accounts for most of its income.

Johnston Press, which has a stock market valuation of only £10.6m, is instead seeking a financial restructuring that could see its lenders take control. The process is also viewed as a potential catalyst for a merger with another newspaper publisher.

Custos bought Metro and its websites earlier this year for £4.7m and says its companies have a turnover of more than £50m. The investment fund is controlled by Christen Ager-hanssen, a Norwegian financier based in London who made and lost a fortune in the dotcom boom. Custos and Johnston Press were not available for comment.