By: Editorial Staff
AS IT SHEDS some of its smaller Midwest papers and takes corporate responsibility for The Telegraph publishing company in London, American Publishing Co. is changing its name, too.
Following formal approval of the reorganization of its Toronto-headquartered parent, Hollinger Inc., American Publishing will be known as Hollinger International Inc.
More important than the name change, however, the reorganization will give APC a substantial infusion of capital.
Under the plan, Hollinger Inc. will credit APC with $114 million, which will “substantially increase the capitalization and ultimately the market liquidity of APC,” its parent said in a statement.
When the reorganization is complete, Hollinger will own about 85% of all outstanding class A and B shares of the former APC, giving the parent 95% of voting shares.
At the same time, APC will assume ownership of a 58.5% stake in The Telegraph publishing company, publisher of the Daily Telegraph of London.
For APC, the addition of the London paper is another step in what has been a transformation of the Frankfort, Illinois-based chain once composed almost entirely of small-town monopoly dailies in America’s heartland.
In the past year, APC bought two of Chicago’s four dailies, the Chicago Sun-Times and the Daily Southtown. APC has also, for some time, had the Israeli English-language paper, the Jerusalem Post, under its corporate umbrella.
APC went public in May, 1994. APC stockholders will vote on the reorganization plan in September.