PUBLISHING

Shares in Scottish publishing group Johnston Press surged more than 20% yesterday on the back of reports the i newspaper is about to be bought by the owner of the Daily Mail.

Edinburgh-based Johnston Press – whose titles include the Scotsman, Yorkshire Post and i, as well as the Buchan Observer, Fraserburgh Herald, Stornoway Gazette, Ellon Times, Deeside Piper and Mearns Leader – put itself up for sale last month.

It followed a strategic review which the group launched in 2017 to assess options for refinancing £220 million of bonds due for repayment next year.

The group has hired restructuring experts Alix Partners to handle a poten- tial insolvency. According to Sky News, Daily Mail and General Trust is in the early stages of planning a bid for the i.

That report was enough to spark a big jump in Johnston Press’s share price yesterday, with the stock soaring by more than one-fifth in value before settling up around 17% at 3.85p.

First-half results from Johnston Press in late August showed the company swung out of the red, with pre-tax profits of £6.2m, during the first six months of 2018.

Total revenue fell 10% to £93m for the first half of 2018, despite a boost from the i.

The group’s shareholders have endured a torrid time, watching the stock fall from the equivalent of £59 per share in 2004 to just 1.3p last month.

i sells 245,000 a day