Earnings: UK’s Johnston Takes Big Investment To Off-Set Ad Declines, Debt

Debt-ridden UK regional news publisher Johnston Press is buying (or rather, selling) itself a financial lifeline in the struggling regional classifieds market by taking a £212.3 ($414 million) investment from Malaysian investment unit Usaha Tegas. The company is issuing 32 million new shares at £0.53 each (that’s 61 percent less than last night’s share price) for a 20 percent stake, with the proceeds due to be used “to strengthen the group’s balance sheet and improve the group’s credit profile by increasing its equity and correspondingly reducing net debt”. More details on PC:UK