The parent company that owns The Toronto Star newspaper is being taken private.
NordStar Capital LP, controlled by the Rivett and Bitove families, will acquire Torstar Corp. (TSX:TS.B), which owns The Toronto Star and 70 community newspapers, for 63 Canadian cents a share in cash, according to a written statement announcing the deal. The transaction values Torstar at roughly $51 million and represents a 58% premium to the stock’s most recent closing price.
The deal represents the end of an era for one of Canada’s largest newspapers. Torstar has been unable to turn around years of steady losses in advertising revenue and paid subscriptions. The shares have fallen 77% since the end of 2017.
The proposal has the support of Torstar’s Board of Directors and its largest independent shareholder, Fairfax Financial Holdings Ltd. Torstar Chief Executive Officer John Boynton is expected to continue in his role following the deal’s closure in the third quarter of this year.
