Glacier to Acquire Portfolio of B.C. Media Assets From Postmedia
18 Octubre 2011 - 4:04PM
Marketwired
Glacier Media Inc. (TSX:GVC) is pleased to announce that, through
its affiliates (collectively "Glacier" or the "Company"), it has
entered into definitive agreements with Postmedia Network Inc.
("Postmedia") to acquire Postmedia's community newspapers in
British Columbia, the Times Colonist, related digital media assets,
and certain real estate assets.
The community newspaper media assets are comprised of two groups
- the Lower Mainland Publishing Group ("LMP") and the Vancouver
Island Newspaper Group ("VING"). The LMP properties include the
North Shore News, the Vancouver Courier, the Burnaby Now, the New
Westminster Record/Royal City Record, the Richmond News, the Delta
Optimist, the Surrey Now, the Coquitlam Now, the Maple Ridge Times,
the Langley Advance, the Abbotsford Mission Times, and the
Chilliwack Times. The VING properties include the Nanaimo Daily
News, the Alberni Valley Times, the Harbour City Star, the Cowichan
Valley Citizen, the Oceanside Star, the Pennyworth, the Westerly
News, and the Campbell River Courier Islander/Campbell River
Courier North Islander.
The Times Colonist was founded in 1858 and serves Victoria,
British Columbia's capital and Vancouver Island. It is one of
Canada's oldest, most respected and award winning newspapers.
The purchase price for the acquired media assets and significant
real estate properties is $86.5 million payable in cash at closing,
subject to adjustment for working capital. The acquisition will be
financed with bank borrowings. Glacier is amending its credit
facilities to fund the acquisition of the assets and provide
additional borrowing capacity for ongoing acquisition
opportunities.
The assets acquired strategically broaden Glacier's market
presence in British Columbia. Glacier now offers the broadest
coverage of local newspaper markets in Western Canada, which
increases market reach for local, regional and national
advertisers, provides for significant digital media opportunities
and strengthens Glacier's competitive position. The operations
acquired also enhance the Company's depth of personnel and
operating resources and offer attractive synergy opportunities.
While the acquisition significantly strengthens the Company's
community newspaper and digital operations, Glacier intends to
continue to build its business information operations (which
include its trade and business & professional information
properties) with particular focus on digital and rich information
opportunities.
Management will focus in the short-term on a balance of paying
down debt, integrating the operations acquired, continuing to
develop existing operations, targeting select acquisition
opportunities and returning value to shareholders. While the
transaction is being financed with bank borrowings, Glacier will be
in a stronger position as a result of the acquisition with
manageable debt levels and increased cash flow. In addition to
operational needs and acquisitions, a portion of any increased cash
flow could be returned to shareholders in the future through share
buy backs and increased dividends.
The transaction is expected to close on or about November 30,
2011 and is conditional upon regulatory and other customary
approvals.
Shares in Glacier can be traded on the Toronto Stock Exchange
under the symbol GVC.
About the Company: Glacier Media Inc. is an information
communications company focused on the provision of primary and
essential information and related services through print,
electronic and online media. Glacier Media Inc. is pursuing this
strategy through its core businesses: the local newspaper, trade
information and business and professional information markets.
Forward-Looking Statements
This news release contains forward-looking statements that
relate to, among other things, the Company's objectives, goals,
strategies, intentions, plans, beliefs, expectations and estimates.
These forward-looking statements include statements relating to the
anticipated completion of the acquisition. These forward looking
statements are subject to risks, uncertainties and other factors
which may cause results, performance or achievements of the Company
to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements, and undue reliance should not be placed on such
statements.
Important factors that could cause actual results to differ
materially from these expectations are listed in the Company's
Annual Information Form under the heading "Risk Factors" and in the
Company's MD&A under the heading "Business Environment and
Risks", many of which are out of the Company's control. These
factors include, but are not limited to, closing risks and risks
relating to the integration of new businesses.
The forward-looking statements made in this news release relate
only to events or information as of the date on which the
statements are made. Except as required by law, the Company
undertakes no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise, after the date on which the statements
are made or to reflect the occurrence of unanticipated events.
Contacts: Glacier Media Inc. Mr. Orest Smysnuik Chief Financial
Officer 604-708-3264www.glaciermedia.ca
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