By: E&P Staff
Hollinger International said Friday it had completed the sales of The Daily Telegraph of London and other properties of the Telegraph Group to the Barclay brothers’ Press Acquisitions Limited for $1.21 billion.
“The sales price reflects the appreciation of the high quality papers that comprise the Telegraph Group, and the great demand we saw for them in the market,” said Gordon Paris, the interim chairman and CEO of Hollinger International.
The closing occurred just hours after Delaware Chancery Court Judge Leo Strine Jr. ruled against Hollinger International’s controlling shareholder Conrad Black, who sought to force the company to put the sale up for a vote by shareholders. Black argued the vote was required because selling the Telegraph, the single most valuable of Hollinger International’s media holdings, amounted to shedding “substantially all” company assets. Strine ruled that the Telegraph amounted to only about half of the publisher’s assets.
Thursday, Black’s holding company Hollinger Inc. announced it would appeal the decision. Through Hollinger Inc., Black holds an 18.2% equity interest that includes super-voting shares giving him a 68% voting interest.
In addition the Telegraph, the sale includes the Sunday Telegraph, Spectator newspaper and Apollo magazine.