Postmedia Network Canada said Tuesday it was in talks to merge with Nordstar Capital, owner of Metroland Media Group and the “Toronto Star.”
The publisher said the proposal would see an equal division of voting rights between the two companies, while Postmedia shareholders would hold a 56% economic interest in the combination, compared to a 44% stake for Nordstar.
Jordan Bitove, publisher of the “Toronto Star” and owner of Nordstar, would become chairman of the combined entity, and Andrew MacLeod, CEO of Postmedia, would become its CEO.
Postmedia clarified that discussions for a combination were not binding at this time, and that there was no guarantee that an agreement would emerge from the discussions.
Under the proposal, the “Toronto Star” would maintain its editorial independence through the incorporation of a new company to manage editorial operations.
Postmedia said the deal would convert some of the current debt into equity, which would result in “significant economic dilution” for existing shareholders.
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