Torstar, which publishes the Toronto Star and over 70
other papers, is being sold to NordStar Capital, the paper reported.
The deal is
worth around US $38 million.
NordStar is
controlled by Jordan Bitove and Paul Rivett and owned by the Bitove and Rivett
families.
The
transaction was approved by the Torstar board, has the support of a significant
majority of the Class A shareholding members of the voting trust and is
supported by Torstar’s largest independent shareholder, Fairfax Financial
Holdings. Upon closing of the deal, Torstar will be taken private.
The deal is
expected to close in the third quarter of 2020.
Torstar
shares were up 50% to more than 60 Canadian cents and remained there midday
Monday.
‘Pass the torch’
“While we
have loved the company and are immensely proud of it, the time has come to pass
the torch,” said John Honderich, chair of the board of Torstar.
Torstar CEO
John Boynton is expected to stay in his role following the close of the deal.
NordStar has said that former Ontario
Nordstar is
run by Jordan Bitove and Paul Rivett. Rivett was an executive at insurance and
investment holding firm Fairfax, which held a 40% stake in Torstar’s Class B
shares.
Bitove is
with Toronto-based private equity firm Spectrum Capital Partners. His family
was among those behind the Toronto Raptors basketball team coming to Toronto
Torstar
publishes more than 70 papers and operates dozens of digital businesses in Canada
Torstar’s A
class voting shares had been controlled since the late 1950s by five families.
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