- Postmedia (TSX:PNC.A) signed an agreement to acquire assets of Saltwire Network Inc., Atlantic Canada’s largest media company
- The Toronto-based media company wants to complete this acquisition by August 26 but admitted that the deal is still subject to conditions, including “satisfactory outcomes” with roughly 100 unionized workers
- The deal is being made via Postmedia Network Inc., a wholly owned subsidiary of Postmedia Network Canada Corp., which is out to gain certain businesses belonging to Saltwire and The Halifax Herald Ltd.
- Postmedia Network Canada Corp. stock last traded at $1.40 per share
Postmedia (TSX:PNC.A) signed an agreement to acquire assets of Saltwire Network Inc., Atlantic Canada’s largest media company.
The Toronto-based media company wants to complete this acquisition by Aug. 26 but acknowledged that the deal is still subject to conditions, including “satisfactory outcomes” with the roughly 100 unionized workers among the companies’ roughly 400 staff.
“If the transaction can be completed, Postmedia intends to provide the necessary back-office resources and operational infrastructure to ensure there continues to be reliable and high-quality local news provided to the affected communities,” Postmedia’s president and chief executive officer, Andrew MacLeod said in a news release.
The deal is being made via Postmedia Network Inc., a wholly owned subsidiary of Postmedia Network Canada Corp., which is out to gain certain businesses belonging to Saltwire and The Halifax Herald Ltd., which are currently under Companies’ Creditors Arrangement Act (CCAA) protection.
“Saltwire filed for CCAA protection after years of financial difficulties, underscoring that its current operational model is unsustainable,” MacLeod said. “In order to save critical journalism jobs, we will need the support of the relevant unions to help construct a viable business model.”
The Halifax Herald owns independent Halifax-based daily newspaper The Chronicle Herald, which was founded nearly 200 years ago.
No financial details were disclosed.
Postmedia Network Canada Corp. is the holding company that owns Postmedia Network Inc., a Canadian news media company representing more than 130 brands across multiple print, online and mobile platforms.
Postmedia Network Canada Corp. (TSX:PNC.A) stock last traded at $1.40 per share and has risen 5.26 per cent since the week began.
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(Top image: Postmedia)