- Jordan Bitove, publisher of the Toronto Star and owner of Nordstar, will be chairman of the merged entity
- Toronto Star will maintain its editorial independence via the incorporation of a new company
- Nordstar in 2020 acquired Torstar Corp, the Toronto-based owner of the Toronto Star and other Canadian media outlets, for about C$60 million
Nordstar Capital has confirmed non-binding discussions concerning a merger of the Metroland newspapers and certain operational Toronto Star assets with Postmedia Network Canada Corp.
The merged entity, which is yet to be named, would be jointly owned and controlled by Nordstar, which would have a 50 percent voting interest and 44 percent economic interest, and existing Postmedia shareholders, who would have a voting interest of 50 percent and an economic interest of 56 percent.
Jordan Bitove, publisher of the Toronto Star and owner of Nordstar, will be chairman of the merged entity. Andrew MacLeod, CEO of Postmedia, will be CEO.
Toronto Star will maintain its editorial independence from the merged entity via the incorporation of a new company, Toronto Star Inc. Nordstar will maintain a 65 percent interest in Toronto Star Inc.
The merger considers a significant reduction in overall debt via a conversion of a portion of the outstanding debt to equity.
“The viability of the newspaper industry in Canada is at an extreme risk, especially in the small towns and communities that are important to this nation. By pooling resources and working collaboratively, we can ensure that more Canadians have access to trusted journalism and quality reporting. This will strengthen our democracy and protect the fabric of our country,” said Bitove in a statement. “Preserving the editorial independence of our newsrooms, including the Toronto Star, is of particular importance to this arrangement going forward.”
The negotiation of this transaction is ongoing and is currently in the form of a non-binding letter of intent.
Nordstar, a Toronto-based private equity firm owned by Jordan Bitove, in 2020 acquired Torstar Corp, the Toronto-based owner of the Toronto Star and other Canadian media outlets. The purchase price was about C$60 million.