Nordstar Capital to buy Torstar
Investment company Nordstar Capital has reached an agreement to acquire media company Torstar, including the Toronto Star newspaper and additional news media properties. NordStar will acquire all issued and outstanding Class A shares and Class B non-voting shares of Torstar for $0.63 in cash per share, for a total of approximately $52 million. Upon completion of the transaction, Torstar will become a privately-owned company. The agreement has the approval of Torstar’s board of directors and, according to Nordstar, support from a majority of its shareholders. The deal remains subject to shareholder approval and is expected to close in the third quarter of 2020. Torstar CEO John Boynton is expected to remain in his position under the new ownership, while former Ontario premier David Peterson will become vice-chair of the Toronto Star.
“We believe in news,” said Nordstar co-founder Jordan Bitove. “With this transaction we can ensure a future for world-class journalists and world-class journalism befitting the Star's storied history. My family has always sought to contribute to the fabric of this country. Today's announcement reflects those values and builds on that history. We are committed to investing in the news business. Fairness and accuracy will continue to guide the papers' prevailing value system. While the company's business will become private, its focus will remain steadfastly public. As the business of news changes, the Toronto Star's founding principles will not.”
In addition to the Toronto Star, Torstar also owns six regional daily newspapers and approximately 70 weekly community newspapers in Ontario, a flyer distribution service and a collection of online properties.