SHARES in Johnston Press dived almost 12 per cent yesterday after a weekend of turmoil which saw the publisher thwart a boardroom coup.
Norwegian entrepreneur Christian Ager-Hanssen, who has amassed a 12.6 per cent share in the group from a standing start in June, was blocked by a clause in the group’s bondholder deal.
The so-called “dead hand proxy put” was inserted into bondholder agreements when Johnston Press re-financed its £220 million debt pile three years ago. It means the board reserves the right to approve the appointment of new directors.
Mr Ager-Hanssen, who owns Sweden’s Metro newspaper, wants to replace chairman Camilla Rhodes and senior management. Since 2013, Johnstone Press’ market value has fallen from more than £100m to just £15m.
Shares in the company have fluctuated heavily this year, peaking at 27.38p in February before falling to 9.5p in August. They closed last night at 14p.
The Scotsman publisher has come under increased pressure from investors, with Mr Ager-Hanssen believed to have the backing of fellow activist Crystal Amber, which is the largest shareholder.
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