Press release from Marketwire
Torstar Announces Agreement to Sell Its Interest in CTVglobemedia Inc.
Friday, September 10, 2010
Torstar Announces Agreement to Sell Its Interest in CTVglobemedia Inc.09:12 EDT Friday, September 10, 2010TORONTO, ONTARIO--(Marketwire - Sept. 10, 2010) - Torstar (TSX:TS.B) announced that it has entered into agreements to sell its 20% interest in CTVglobemedia Inc. for aggregate cash proceeds of approximately $345 million. Under the agreements, BCE Inc. will acquire the interests of each of Torstar, The Woodbridge Company Limited ("Woodbridge") and Ontario Teachers Pension Plan ("Teachers") in CTVglobemedia Inc. (excluding the Globe and Mail and related assets) and Woodbridge will separately acquire the interests of Torstar and Teachers in the Globe and Mail and related assets. The price represents a multiple of approximately 10 times EBITDA. The transactions are subject to customary approvals and closing conditions, including approval by the Canadian Radio-television and Telecommunications Commission (with respect to the sale to BCE Inc.) and the Competition Bureau. The transactions are expected to close by mid 2011.David Holland, President and Chief Executive Officer of Torstar, said "We are pleased to participate in a transaction that is attractive and beneficial to all of the CTVglobemedia shareholders. The resulting strengthening of Torstar's financial position will be an asset as we continue to build from our core operations and seek out the opportunities that are emerging in the increasingly digital landscape."ABOUT TORSTAR CORPORATIONTorstar Corporation is a broadly based media company listed on the Toronto Stock Exchange (TS.B). Its businesses include the Star Media Group led by the Toronto Star, Canada's largest daily newspaper, and digital properties including thestar.com, toronto.com, Workopolis, Olive Media, and eyeReturn Marketing; Metroland Media Group, publishers of community and daily newspapers in Ontario; and Harlequin Enterprises, a leading global publisher of books for women.Forward-looking statementsCertain statements in this press release and in Torstar's oral and written public communications may constitute forward-looking statements that reflect management's expectations regarding Torstar's future growth, results of operations, performance and business prospects and opportunities as of the date of this release. Generally, these forward looking statements can be identified by the use of forward-looking terminology such as "anticipate", "believe", "plan", "forecast", "expect", "intend", "would", "could", "if", "may" and similar expressions. All such statements are made pursuant to the "safe harbour" provisions of applicable Canadian securities legislation. These statements reflect current expectations of management regarding future events and operating performance, and speak only as of the date of this release. Torstar does not intend, and disclaims any obligation to, update any forward-looking statements, whether written or oral, or whether as a result of new information or otherwise, except as may be required by law.By their very nature, forward-looking statements require management to make assumptions and are subject to inherent risks and uncertainties. There is a significant risk that predictions, forecasts, conclusions or projections will not prove to be accurate, that management's assumptions may not be accurate and that actual results, performance or achievements may differ significantly from such predictions, forecasts, conclusions or projections expressed or implied by such forward-looking statements. We caution readers to not place undue reliance on the forward-looking statements in this press release as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, outlooks, expectations, goals, estimates or intentions expressed in the forward-looking statements. In addition, forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.These factors include, but are not limited to: closing conditions, termination rights, and other risks and uncertainties related to the timing and completion of the proposed transactions, general economic conditions in the principal markets in which Torstar operates, Torstar's ability to operate in highly competitive industries, Torstar's ability to compete with other forms of media, Torstar's ability to attract advertisers, cyclical and seasonal variations in Torstar's revenues, labour disruptions, newsprint costs, foreign exchange fluctuations, investments, restrictions imposed by existing credit facilities and availability of capital, pension fund obligations, reliance on its printing operations, reliance on technology and information systems, interest rates, availability of insurance, litigation, environmental regulations, dependence on key personnel, control of Torstar by the voting trust, loss of reputation, intellectual property rights and uncertainties associated with critical accounting estimates. We caution that the foregoing list is not exhaustive of all possible factors, as other factors could adversely affect our results. For more information, please see the discussion of risks affecting Torstar and its businesses in Torstar's 2009 Management's Discussion & Analysis which is available at www.sedar.com and on Torstar's corporate website www.torstar.com.In addition, a number of assumptions, including those assumptions specifically identified throughout this press release, were applied in making the forward-looking statements set forth in this press release. Some of the key assumptions include, without limitation, assumptions regarding the performance of the North American economy; tax laws in the countries in which we operate; continued availability of printing operations; continued availability of financing on appropriate terms; exchange rates; market competition; and successful development of new products. There is a risk that some or all of these assumptions may prove to be incorrect.Torstar's news releases are available on the Internet at www.torstar.com.FOR FURTHER INFORMATION PLEASE CONTACT: Torstar Corporation Lorenzo DeMarchi Executive Vice-President and Chief Financial Officer (416) 869-4776