August 8, 2018 / 7:41 PM / 8 days ago

Tronc weighing offer to sell newspaper business: report

(Reuters) - Tronc Inc (TRNC.O) is weighing an offer to sell the Chicago Tribune and the rest of its newspaper holdings to a private equity firm, the Chicago Tribune reported on Wednesday.

FILE PHOTO: The Chicago Tribune building is seen in Chicago, Illinois, U.S. May 16, 2016. REUTERS/Jim Young/File Photo

An offer of between $19 and $20 per Tronc share is on the table, the report here said, citing sources close to the company, adding that at least one other private equity bid for Tronc may be in the works.

The logo of Tronc Inc (TRNC.O), formerly Tribune Publishing Company, is seen at TechFair LA, a technology job fair, in Los Angeles, California, U.S., January 26, 2017. REUTERS/Lucy Nicholson/File Photo

At its mid-point, the offer represents a roughly 33 percent premium to the stock’s Tuesday closing price.

A total offer for the entire company could be over $700 million, the Tribune reported. Tronc had a market value of about $521 million as of Tuesday, according to Thomson Reuters data.

Tronc declined to comment when contacted by Reuters.

Its shares jumped 13 percent to $16.69 on Wednesday afternoon.

The Chicago-headquartered company already sold its other newspapers including the Los Angeles Times and the San Diego Union-Tribune earlier this year to billionaire investor Patrick Soon-Shiong for $500 million.

Reporting by Aishwarya Venugopal in Bengaluru; Editing by Sai Sachin Ravikumar

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