By: E&P Staff Chicago Sun-Times publisher Hollinger International is selling off some of its investment portfolio for an anticipated $10 million to finance stock repurchases.
After markets closed Thursday, Hollinger said it had entered an agreement with an agreement with Industry Ventures Fund IV L.P. and Industry Ventures Acquisition Fund L.P. to sell certain portfolio investments, mostly in the technology sector.
Hollinger has already completed the sale of Hollinger Digital LLC for $8.15 million, and anticipates receiving up to an additional $1.85 million under the agreement. "The company may receive up to an additional $1.0 million in the future if certain conditions are satisfied," Hollinger stated.
The transactions will have no material effect on reported income before taxes because of write-downs for accounting purposes in prior years, according to the company.
"For income tax purposes, upon the consummation of the related transactions, the Company expects to realize a benefit of approximately $10 million," Hollinger added.
Hollinger said it would use the proceeds, along with another $10 million from recently exercised stock options, to repurchase company shares as market conditions warrant.
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