Lee Enterprises Comments on Purported Director Nominations from Alden

Rhea-AI Summary

Lee Enterprises, Inc. (NASDAQ: LEE) announced its response to Alden Global Capital's nomination of three candidates for the Board of Directors at the 2022 Annual Meeting. Lee denied Alden's initial request for nomination materials due to non-compliance with company bylaws. Alden later submitted a purported notice of nominations just before the November 26 deadline. The Board is reviewing Alden's proposal to purchase the company for $24.00 per share in cash, with no immediate action required from shareholders.

Positive

• The Board is reviewing an unsolicited proposal from Alden to purchase Lee for $24.00 per share, indicating potential shareholder value.

Negative

• Alden's failure to follow nomination procedures raises concerns about governance and may indicate ongoing tensions with management.

DAVENPORT, Iowa--(BUSINESS WIRE)-- Lee Enterprises, Incorporated (NASDAQ: LEE) (“Lee” or the “Company”) today commented on the purported notice submitted by Alden Global Capital, LLC (together with its affiliates, “Alden”) seeking to nominate three candidates to stand for election to Lee’s Board of Directors at the Company’s 2022 Annual Meeting. Lee issued the following statement in response:

“Early last week, Lee promptly and properly denied a request from Alden seeking certain nomination materials because Alden failed to comply with the clear and substantive requirements of Lee’s bylaws. Alden did not subsequently submit a revised request. Instead, late in the afternoon of the Company’s Friday, November 26 nomination deadline, Alden submitted a purported notice of nominations.

“Consistent with its fiduciary duties and in consultation with its advisors, Lee’s Board of Directors will carefully review Alden’s purported notice for compliance with the nomination procedures and the information, documentation and other requirements that have been set forth in Lee’s publicly available bylaws for over two years. After completion of its review of Alden’s purported notice, Lee will provide further information to shareholders.”

As previously disclosed, Alden has made an unsolicited non-binding proposal to purchase the Company for $24.00 per share in cash. Lee’s Board of Directors is carefully reviewing Alden’s proposal to determine the course of action that it believes is in the best interests of the Company and Lee shareholders. There is no need for Lee shareholders to take any action at this time.

About Lee Enterprises
Lee Enterprises is a major subscription and advertising platform and a leading provider of local news and information, with daily newspapers, rapidly growing digital products and over 350 weekly and specialty publications serving 77 markets in 26 states. Year to date, Lee’s newspapers have average circulation of 1.0 million, and our legacy website, including acquisitions, reach more than 47 million digital unique visitors. Lee’s markets include St. Louis, MO; Buffalo, NY; Omaha, NE; Richmond, VA; Lincoln, NE; Madison, WI; Davenport, IA; and Tucson, AZ. Lee Common Stock is traded on NASDAQ under the symbol LEE. For more information about Lee, please visit www.lee.net.

Forward-Looking Statements
The information provided in this press release may include forward-looking statements relating to future events or the future financial performance of the Company. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Words such as “aims,” “anticipates,” “plans,” “expects,” “intends,” “will,” “potential,” “hope” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon current expectations of the Company and involve assumptions that may never materialize or may prove to be incorrect. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties. Detailed information regarding factors that may cause actual results to differ materially from the results expressed or implied by statements in report relating to the Company may be found in the Company’s periodic filings with the SEC, including the factors described in the sections entitled “Risk Factors,” copies of which may be obtained from the SEC’s website at www.sec.gov. The Company does not undertake any obligation to update forward-looking statements contained in this press release.

Additional Information and Where to Find It
The Company intends to file a proxy statement and accompanying WHITE proxy card with the SEC with respect to the Company’s 2022 Annual Meeting of Shareholders. The Company’s shareholders are strongly encouraged to read such proxy statement, the accompanying WHITE proxy card and other documents filed with the SEC carefully in their entirety when they become available because they will contain important information. The Company’s shareholders will be able to obtain any proxy statement, any amendments or supplements to the proxy statement and other documents filed by the Company with the SEC free of charge at the SEC’s website at www.sec.gov. Copies will also be available free of charge at the Company’s website at www.lee.net.

Certain Information Regarding Participants
The Company, its directors and certain of its executive officers will be participants in the solicitation of proxies from the Company’s shareholders in connection with the matters to be considered at the Company’s 2022 Annual Meeting of Shareholders. Information about the Company’s directors and executive officers is available in the Company’s (a) annual report on Form 10-K for the year ended September 27, 2020 filed with the SEC on December 11, 2020 and (b) proxy statement filed with the SEC on January 15, 2021 with respect to the Company’s 2021 Annual Meeting of Shareholders, as amended by the amendment to the proxy statement filed with the SEC on February 11, 2021. To the extent holdings of the Company’s securities by such directors or executive officers have changed since the amounts printed in the proxy statement, such changes have been or will be reflected on Statements of Changes in Beneficial Ownership on Form 4 filed with the SEC. Additional information regarding the identity of potential participants, and their direct or indirect interests, by security holdings or otherwise, will be set forth in the proxy statement and other materials to be filed with the SEC in connection with the Company’s 2022 Annual Meeting of Shareholders.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211129005197/en/

Investor Contact

IR@lee.net

(563) 383-2100

Media Contact

Jamie Tully/Jenny Gore

Sard Verbinnen & Co

Lee-SVC@sardverb.com

Source: Lee Enterprises

FAQ

What is Lee Enterprises' response to Alden Global Capital's nomination proposal?

Lee Enterprises denied Alden's initial request for nomination materials and is reviewing their purported notice of nominations.

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

Alden has made an unsolicited offer to purchase Lee Enterprises for $24.00 per share in cash.

When is Lee Enterprises' 2022 Annual Meeting of Shareholders?

The 2022 Annual Meeting of Shareholders for Lee Enterprises will occur as planned, with details forthcoming.

What action is required from Lee Enterprises shareholders regarding Alden's proposal?

There is no action required from Lee shareholders at this time, as the Board is still reviewing Alden's proposal.