British newspaper publisher Johnston Press plc (LON:JPR) shares jumped 76% in Thursday afternoon trading as it told investors that it was exploring options to restructure or refinance its debt.
In a statement issued after its share price more than doubled in morning trade, Johnston Press noted press reports that its biggest investor had written to the group saying he was willing to help refinance the company.
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The company, which owns the i newspaper, The Scotsman and The Yorkshire Post, confirmed that it received a letter from activist investor Christen Ager-Hanssen on Friday but said it had not yet received proposals from any party for a refinancing or restructuring of its debt. Johnston Press did not provide any details on the contents of the letter.
“As stated previously, any proposal that results from these discussions will remain subject to negotiation and consent of relevant stakeholders, and there can be no certainty that a formal proposal will be forthcoming,” the group said.
The letter from Ager-Hanssen, whose Custos Group owns more than 20% of the publisher, reportedly raised concerns about speculation the company could be heading for insolvency.
It is understood Ager-Hanssen asked the company to clarify whether it had or planned to instruct administrators and called on the board to consult shareholders on its options.
Ager Hanssen has demanded a major overhaul of the company since he invested in its last year, leading to the resignation of long-serving chief executive Ashley Highfield in May.
In afternoon trading shares were changing hands at 6.23p.