NEW YORK, Jan. 11 /CNW/ -- Hollinger International Inc.
(NYSE: HLR) and its Canadian affiliate, Hollinger Canadian Publishing Holdings
Co., have entered into an agreement to sell substantially all of their
remaining Canadian assets, consisting of, among other things, approximately
87% of the outstanding Units of Hollinger Canadian Newspapers, Limited
Partnership ("HCNLP") and all of the shares of Hollinger Canadian Newspapers
GP Inc., Eco Log Environmental Risk Information Services Ltd. and KCN Capital
News Company, to an affiliate of Glacier Ventures International Corp.
("Glacier") (TSX: GVC) for an aggregate purchase price of C$121.7 million, or
US$104.4 million.
HCNLP owns and operates: 1) the Business Information Group ("BIG"), which
publishes a variety of trade magazines, directories, newsletters, electronic
databases and specialty websites, 2) a group of daily and weekly newspaper and
related printing operations in British Columbia, including the Nelson Daily
News, West Kootenay Weekender, Cranbrook Daily Townsman, Kimberley Daily
Bulletin, East Kootenay Weekly Extra, East Kootenay Weekly Weekender, Trail
Times, Fernie Free Press, Grand Forks Gazette, Grand Forks Boundary Bulletin,
Creston Valley Advance, Kamloops Daily News, Kamloops The Extra, Prince George
Citizen, Prince George This Week, Prince George Extra, Alaska Highway News,
North Peace Express, The Northener, Peace River Block News, The Regional
Advertiser, The Northern Horizon, The Mirror, Prince Rupert Daily News, and
Prince Rupert Daily News Extra, 3) the Real Estate Weekly and Kodiak Press in
Vancouver, B.C., and 4) The Sherbrooke Record and Brome County News in the
eastern townships of Quebec.
N publishes the Merritt News and Merritt News Extra in B.C. Eco Log is
an electronic information and report service provider that accesses key
federal, provincial and private sector databases to help identify potential
environmental risks in Canada for real estate developers, banks, insurance
companies and a variety of other customers.
"With the transaction announced today, we can now focus our efforts
entirely on leveraging the strength of our more than 100 media properties
across the Chicago area, our Sun-Times News Group," said Gordon A. Paris,
Chairman and Chief Executive Officer. "We feel confident that our Canadian
portfolio of publications will continue to be outstanding contributors to the
communities they serve and see ongoing success with their new owner."
In December 2005, Hollinger International sold to Glacier its 70 percent
interest in Great West Newspaper Group Ltd. and its 50 percent interest in
Fundata Canada Inc. to Jamison Newspapers Inc. and Glacier ("Glacier") for
total consideration for total consideration of approximately CDN$47.1 million,
or approximately US$40.5 million.
Closing is subject to customary conditions, including obtaining all
required approvals under the Competition Act (Canada), and is expected to
occur prior to the end of February, 2006.
Hollinger International's financial adviser in the sale of its Canadian
portfolio of publications is Lazard.
About Hollinger International
Hollinger International Inc. (http://www.hollingerinternational.com) is a
newspaper publisher whose assets include The Chicago Sun-Times and a large
number of community newspapers in the Chicago area as well as in Canada.
Cautionary Statement on Forward-Looking Statements
Certain statements made in this release are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995
(the "Act"). Forward-looking statements include, without limitation, any
statement that may predict, forecast, indicate or imply future results,
performance or achievements, and may contain the words "believe,"
"anticipate," "expect," "estimate," "project," "will be," "will continue,"
"will likely result" or similar words or phrases. Forward-looking statements
involve risks and uncertainties, which may cause actual results to differ
materially from the forward-looking statements. The risks and uncertainties
are detailed from time to time in reports filed by Hollinger International
with the Securities and Exchange Commission, including in its Forms 10 K and
10 Q. New risk factors emerge from time to time and it is not possible for
management to predict all such risk factors, nor can it assess the impact of
all such risk factors on the Company's business or the extent to which any
factor, or combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statements. Given
these risks and uncertainties, investors should not place undue reliance on
forward- looking statements as a prediction of actual results.
Contacts:
Molly Morse / Jeremy Fielding
Kekst and Company
212-521-4826/4825
molly-morse@kekst.com
jeremy-fielding@kekst.com
