Gannett Offers To Buy Tribune Publishing For $12.25 In Cash - Quick Facts

(RTTNews) - Gannett Co., Inc. (GCI), a media and marketing solutions company, Monday announced a proposal to acquire Tribune Publishing Co. (TPUB) for $12.25 in cash per Tribune share. The total value of the proposal is approximately $815 million, including certain Tribune liabilities, which include approximately $390 million of debt.

Gannett's all cash proposal would provide Tribune stockholders a 63% premium to the closing stock price of Tribune on April 22, and a 58% premium to the volume weighted average trading price over the past 90 days.

The $12.25 per share offer price also represents a significant premium to the $8.50 share price at which Tribune recently issued common shares and provides immediate and certain cash value to Tribune stockholders.

The proposed deal is expected to deliver substantial synergies of approximately $50 million annually, subject to due diligence, that are anticipated to drive compelling near- and long-term growth and value creation at the combined company.

Gannett said it believes that there are compelling strategic and financial benefits for a combination of the two companies.

As one company, Gannett and Tribune would have the financial stability to continue maintaining journalistic excellence, independence, high standards and integrity for years to come.

Gannett said it can quickly consummate a transaction without any financing condition and has been advised that the proposed combination will not impact the tax-free treatment of Tribune's recent spin-off transaction.