Alden Global Capital, LLC Announces Offer to Acquire Lee Enterprises

Rhea-AI Summary

Alden Global Capital has proposed to acquire Lee Enterprises (NASDAQ: LEE) for $24.00 per share, a 30% premium over its closing price of $18.49 on November 19, 2021. Alden, which owns approximately 6% of Lee's common stock, aims to strengthen local journalism and enhance operational efficiency as a private entity. The proposal includes a commitment to financing without contingencies and anticipates a swift completion, pending due diligence. Alden emphasizes the need for scale in the newspaper industry to remain competitive during challenging market conditions.

Positive

• Alden offers a purchase price of $24.00 per share, indicating a 30% premium.
• Alden owns approximately 6% of Lee, demonstrating a significant investment.
• The proposal aims to enhance operational efficiency and support local journalism.

Negative

• None.

WEST PALM BEACH, Fla.--(BUSINESS WIRE)-- Alden Global Capital, LLC today sent the following letter to the Board of Directors of Lee Enterprises (NASDAQ: LEE):

To the Board of Directors:

Alden Global Capital, LLC (“Alden”) is a significant investor in American newspapers, with platforms including MediaNews Group, Inc. and Tribune Publishing Company (collectively referred to as “we”) that are committed to ensuring communities nationwide have access to robust, independently minded local journalism. Our goal is to provide valued news and information to local subscribers nationwide, led by a talented team of seasoned newspaper executives who have worked in journalism for an average of more than 30 years. Our newspapers include The Chicago Tribune, The Denver Post, The Mercury News, The New York Daily News, The Orange County Register, The Boston Herald, The Baltimore Sun and other leading newspapers across the U.S. As you are aware, an affiliated entity of ours owns approximately 6% of the issued and outstanding common stock of Lee Enterprises, Incorporated (“Lee”).

We believe that as a private company and part of our successful nationwide platforms, Lee would be in a stronger position to maximize its resources and realize strategic value that enhances its operations and supports its employees in their important work serving local communities. Our interest in Lee is a reaffirmation of our substantial commitment to the newspaper industry and our desire to support local newspapers over the long term. Accordingly, we propose to purchase Lee for $24.00 per share in cash, representing a substantial premium of approximately 30% to Lee’s closing share price of $18.49 on November 19^th, 2021. We have the ability to fully finance this all-cash proposal and the definitive merger agreement will not include a financing condition.

We have engaged an experienced team of advisors, including Moelis & Company as financial advisor as well as Akin Gump Strauss Hauer & Feld LLP and Olshan Frome Wolosky LLP as legal counsel, and have conducted a comprehensive review of publicly available information about Lee. Based on our review of this information and in consultation with our counsel, we do not believe any material regulatory issues would inhibit the completion of this transaction in a timely manner.

The foregoing indicative terms are based solely on our review of publicly available information, are subject to completion of our due diligence and execution of definitive documentation acceptable to us and we reserve the right to withdraw or modify our proposal in any manner. Following the review of targeted additional information pursuant to a mutually acceptable nondisclosure agreement, we expect that we would complete our work, including negotiation of definitive documentation, in approximately four weeks.

We are keenly interested in working constructively with the Lee Board of Directors (the “Board”), with the goal of getting to a successful transaction with value, speed and certainty. Scale is critical for newspapers to ensure necessary staffing and in order to thrive in this challenging environment where print advertising continues to decline and back office operations and legacy public company functions remain bloated, thus depriving newsrooms of resources that are best used serving readers with relevant, trustworthy and engaging content.

We hope that the Board will work with us to maximize value and opportunities for all Lee stockholders and employees, and we look forward to receiving a response to this non-binding proposal in an expeditious manner.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211122006350/en/

Cameron Gurley

646 660 8642

cameron@goldin.com

Source: Alden Global Capital, LLC

FAQ

What is Alden Global Capital's proposal for Lee Enterprises?

Alden Global Capital proposes to acquire Lee Enterprises for $24.00 per share, which is a 30% premium over Lee's recent stock price.

When was the acquisition proposal for Lee Enterprises made?

The proposal was made by Alden Global Capital on November 22, 2021.

What percentage of Lee Enterprises does Alden Global Capital own?

Alden Global Capital owns approximately 6% of the issued and outstanding common stock of Lee Enterprises.

What is the significance of the proposed acquisition for Lee shareholders?

The acquisition offers shareholders a substantial premium on their shares, potentially maximizing value as Alden aims to strengthen operations.

How quickly does Alden Global Capital expect to complete the acquisition of Lee Enterprises?

Alden Global Capital expects to complete the acquisition process in approximately four weeks, pending due diligence and negotiations.