A MAJOR investor in Johnston Press has offloaded more than half its shares in the publisher amid speculation that another shareholder is bidding to remove the company’s chairman.

River and Mercantile Asset Management reduced its shareholding in the group, which owns The Scotsman and i newspapers, from 9.5 per cent to 4.2 per cent.

Christian Ager-Hanssen, the Norwegian who owns Sweden's Metro newspaper, is reported to have plans to oust interim chairman Camilla Rhodes and install himself in the role.

Ahead of writing to the board to request an extraordinary general meeting, Mr Ager-Hanssen, is understood to have approached the company’s largest shareholder, Crystal Amber, to seek their support for the plan.

Mr Ager-Hannsen, through his Custos investment company, has a 12.57 per cent share in Johnston Press.

Earlier this week, Johnston Press has said it planned to consult its largest bondholders as it looks to refinance its £220 million debt pile, which is due for repayment in 2019.

In August, when Mr Ager-Hannsen acquired five per cent of Johnston Press, he said he had lined up investors to buy the bond debt and that the issue would be resolved by February 2018.

Johnston Press shares climbed 15 per cent yesterday following River and Mercantile’s offloading.