Hedge fund Alden Global Capital to acquire Tribune Publishing
Hedge fund Alden Global Capital (Alden) is to acquire all of the outstanding shares of the common stock of Tribune Publishing, owner of the Chicago Tribune, the New York Daily News and other local newspapers, for USD17.25 per share in cash.
Alden currently owns 11,554,306 shares of Tribune common stock, representing 31.6 per centof the Company's outstanding shares.
The purchase price represents a premium of 45 per cent to the closing price of Tribune common stock on 11 December, 2020, the last trading day prior to receiving Alden's proposal, a premium of approximately 35 per cent to the closing price of Tribune common stock on 30 December, 2020, the last trading day prior to public disclosure of Alden's proposal, and a 21 per cent increase from Alden's initial offer of $14.25 per share. The definitive agreement was approved by Tribune's Board of Directors following the recommendation by the special committee of Tribune's Board formed to evaluate Alden's proposal and potential alternatives.
Philip G Franklin, Chairman of the Board and a member of the special committee, says: "Over the past year, the Company has taken a number of actions to adapt to an ever-changing business and industry environment, including the impact of Covid-19. These actions included strengthening the Company's financial position, driving digital growth and investing in high-quality content to better serve customers, employees and communities. This positioning enabled the special committee to negotiate a premium, all-cash price, which the committee concluded was superior to the available alternatives."
Concurrent with the signing of the merger agreement, Alden has signed a non-binding term sheet to sell The Baltimore Sun to Sunlight for All Institute, a public charity formed by Stewart Bainum Jr.