Postmedia Network Canada Corp confirmed it was in a non-binding discussion with Nordstar Capital for a potential merger with some operational assets of the Toronto Star and the Metroland newspapers.
The merger will help to significantly reduce overall debt and to grow a strong national editorial infrastructure, the company said.
Nordstar Capital LP will have a 50% voting interest and 44% economic interest in the merged entity, which is yet to be named, while Postmedia shareholders will hold the rest.
Jordan Bitove, owner of Nordstar, will be the chairman of the combined entity and Andrew MacLeod, CEO of Postmedia, the CEO.
The Toronto Star will maintain its editorial independence through the incorporation of a new company, Toronto Star Inc, the company said.
Nordstar would retain a 65% interest in Toronto Star Inc, and Bitove would remain publisher of the Toronto Star.
Source: Reuters.com