Tronc weighing offer to sell newspaper business: report

Tronc weighing offer to sell newspaper business: report

Tronc Inc is weighing an offer to sell the Chicago Tribune and the rest of its newspaper holdings to a private equity firm, the Chicago Tribune reported on Wednesday.

FILE PHOTO: The Chicago Tribune building is seen in Chicago
FILE PHOTO: The Chicago Tribune building is seen in Chicago, Illinois, U.S. May 16, 2016. REUTERS/Jim Young/File Photo

REUTERS: Tronc Inc is weighing an offer to sell the Chicago Tribune and the rest of its newspaper holdings to a private equity firm, the Chicago Tribune reported on Wednesday.

An offer of between US$19 and US$20 per Tronc share is on the table, the report http://www.chicagotribune.com/business/ct-biz-tronc-newspapers-offer-20180808-story.html said, citing sources close to the company, adding that at least one other private equity bid for Tronc may be in the works.

At its mid-point, the offer represents a roughly 33 percent premium to the stock's Tuesday closing price.

A total offer for the entire company could be over US$700 million, the Tribune reported. Tronc had a market value of about US$521 million as of Tuesday, according to Thomson Reuters data.

Tronc declined to comment when contacted by Reuters.

Its shares jumped 13 percent to US$16.69 on Wednesday afternoon.

The Chicago-headquartered company already sold its other newspapers including the Los Angeles Times and the San Diego Union-Tribune earlier this year to billionaire investor Patrick Soon-Shiong for US$500 million.

(Reporting by Aishwarya Venugopal in Bengaluru; Editing by Sai Sachin Ravikumar)

Source: Reuters

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