One of Canada’s biggest print media companies has been bought. Torstar, owner of the Toronto Star, has agreed to a $52-million dollar acquisition deal with NordStar Capital — a Canadian investment firm that plans to take the company private. The deal takes control of the company away from five families — the Atkinsons, Hindmarshs, Campbells, Thalls and Honderichs. John Honderich, a former publisher of the paper, said the decision was difficult. Still, the families realized that for Torstar to succeed now, it requires new ownership with both resources and determination. Under the terms of the deal, NordStar will acquire all of the issued and outstanding Class A shares and Class B non-voting shares of Torstar for 63 cents per share.
Torstar’s shares closed at 40 cents at the end of trading Tuesday, but the company says the 63 cents per share it agreed to represents a nearly 67 per cent premium on the 20-day volume-weighted average trading price of the Class B non-voting shares. NordStar is run by businessmen Paul Rivett and Jordan Bitove.
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Photo Credit: The Toronto Star – TorStar