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Acquisitions and mergers

Barclay Brothers Acquire Hollinger Inc for $466m Amid Ongoing Controversies

Strategic Insights

— 1 min read

The Barclay brothers, Sir David and Sir Frederick, have agreed to acquire Hollinger Inc, the controlling shareholder behind The Daily Telegraph, Chicago Sun-Times, and other titles, for $466.5m. The deal is subject to completion, which may be hindered by a string of lawsuits against Lord Black, the former chairman of Hollinger International, and other executives. The acquisitions could deter potential bidders for the Telegraph titles and could impact the editorial direction and management of the newspapers.

Key Takeaways:

  • The Barclay brothers have agreed to pay $466.5m for Hollinger Inc, a controlling shareholder of several major newspapers.
  • The deal is subject to completion, and ongoing lawsuits against Lord Black and other executives may hamper its progress.
  • Lord Black controls Hollinger Inc, which holds 72.8% of the voting rights of Hollinger International and 30.3% of the equity.
  • The Barclay brothers will assume $140m in debt and conduct a "proper legal analysis" of potential liabilities once they gain control of the company.
  • Lord Black's private investment vehicle, Ravelston, will receive almost $230m for its 78% holding in Hollinger Inc.
  • The deal does not involve the acquisition of Hollinger International's operating company or the assumption of liability for Lord Black's conduct.
  • The Barclay brothers have no plans to change the editorial direction or management of the Telegraph titles.

Statistics:

  • The Barclay brothers will pay $466.5m for Hollinger Inc.
  • The deal values Hollinger Inc at $326.54m.
  • Lord Black's private investment vehicle, Ravelston, will receive almost $230m for its 78% holding in Hollinger Inc.
  • The Barclay brothers will assume $140m in debt related to Hollinger Inc.
  • Hollinger International owns several major newspapers, including The Daily Telegraph, Chicago Sun-Times, and The Jerusalem Post.
  • The US Securities and Exchange Commission has obtained a federal court order to "preserve" Hollinger International's corporate assets.
  • A special committee at Hollinger International is seeking more than $200m in a lawsuit filed against Lord Black, David Radler, and Hollinger Inc.

Sources:

  • The Financial Times
  • The New York Times
  • The Herald

Note: The original article does not contain publication dates for the sources, so the citation is based on the original material.

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