TORONTO — Torstar Corp. will hold a formal virtual meeting of shareholders today where it’s expected that NordStar Capital LP’ $60-million takeover of the newspaper group will be approved.
The owner of the Toronto Star and numerous other print and online publications has experienced years of declining revenue that accelerated during the pandemic.
NordStar’s initial offer was worth $52 million when announced on May 27 but was increased after a rival group came forward with another proposal on July 10.
The rival group included investment banker Neil Selfe and two brothers, Tyler and Matthew Proud, who formed Canadian Modern Media Holdings Inc. to bid for Torstar.
Because of the corporate structure of Torstar, any deal requires the support of five families that have controlled a voting trust since Toronto Star publisher Joseph Atkinson died in 1948.
Torstar said July 11 that the trustees would support NordStar’s amended offer, worth 74 cents per share — up 17.5 per cent from the initial 63 cents per share.
This report by The Canadian Press was first published July 21, 2020.
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The Canadian Press
