Johnston Press takeover could be blocked
THE largest shareholder in newspaper publisher Johnston Press has increased his stake to more than 25pc to be ready to block any attempt to sell or restructure the company against his wishes.
Norwegian entrepreneur Christen Ager-hanssen, who owns the Swedish version of the Metro freesheet, previously held 20pc of Johnston Press via his fund Custos and has been a vocal critic of its board. Now he owns more than a quarter of Johnston Press, Mr Ager-hanssen would be able to vote down any special resolutions or a scheme of arrangement relating to any sale or restructuring of the company. Such moves require the approval of 75pc of shareholders.
Mr Ager-hanssen, who took a stake in Johnston Press last August at more than five times its current valuation, had sought to install his own directors, but was thwarted by conditions in its £220m bond debt. He said: “Now we are in a position to be more active and ensure that some of the board or advisers’ more insane actions can be blocked.
“Custos obviously has no confidence in the board or its advisers but our increased holding proves that we continue to have confidence in the underlying business.”
It is a potential blow to attempts by Johnston Press to attract a takeover. The publisher of about 200 regional titles including The Yorkshire Post and The Scotsman, as well as the i national newspaper, faces a deadline in June to repay or refinance its bond debt. Brutal conditions in the regional print market mean it cannot meet obligations to lenders. The business has a stock market valuation of less than £2.5m, down from a peak of £1.4bn before the financial crisis.
Mr Ager-hanssen has expressed concern that Johnston Press could be handed to Goldentree in a pre-packaged sale by administrators. In an insolvency, shareholders have no voting rights.
A spokesman for Johnston Press said: “We launched the formal sale process last week so interested parties could make offers for the company. That process continues and remains our focus.”
£1.4bn The peak valuation of Johnston Press before the financial crisis. It is now worth less than £2.5m