Court approves NordStar’s $60-million Torstar purchase, deal to close this week

Court approves NordStar’s $60-million Torstar purchase, deal to close this week
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TORONTO — An Ontario judge has approved NordStar Capital LP’s purchase of Torstar Corp., the publisher of the Toronto Star as well as other Ontario daily and community newspapers.

The ruling was the final regulatory hurdle for the $60-million friendly takeover, which had previously received overwhelming shareholder support.

Torstar says it expects the arrangement to be completed by Thursday.

Because of the corporate structure of Torstar, any deal requires the support of five families that have controlled a voting trust since Toronto Star publisher Joseph Atkinson died in 1948.

Torstar said July 11 that the trustees had agreed to NordStar’s amended offer of 74 cents per share despite the emergence of a late rival bidder.

The company’s lawyers argued in court Friday that a rival bid by Canadian Modern Media Holdings Inc. had arrived late in the process and it failed to meet a crucial deadline for submitting final bids.

Torstar holds an investment in The Canadian Press as part of a joint agreement with subsidiaries of the Globe and Mail and Montreal’s La Presse.

This report by The Canadian Press was first published July 28, 2020.

Companies in this story: (TSX:TS.B)

The Canadian Press

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