Torstar Corporation
TSX : TS.B

Torstar Corporation

June 27, 2008 07:00 ET

Torstar Announces Agreement to Purchase Multimedia Nova Corporation Class A Shares

TORONTO, ONTARIO--(Marketwire - June 27, 2008) - 7:00 a.m. Friday, June 27, 2008 - Torstar Corporation ("Torstar") (TSX:TS.B) today announced that it has agreed to acquire, by way of private placement, 590,631 Class A Subordinate Voting Shares ("Class A Shares") in Multimedia Nova Corporation ("Multimedia"). The total aggregate consideration of $236,253 reflects a purchase price per Class A Share of Cdn.$0.40. On closing of the purchase, Torstar's total holdings in Multimedia will be 1,030,631 Class A Shares, representing 19.9% of the Class A Shares outstanding. The closing is conditional on receiving TSX Venture Exchange Approval. Torstar is acquiring the Class A Shares for investment purposes.

Multimedia (www.multimedianova.com) is a communications company listed on the TSX Venture Exchange (MNC.A) which publishes a variety of newspapers and provides printing and distribution services to customers primarily in the Greater Toronto Area.

Torstar expects to evaluate its investment in the Class A Shares, on an ongoing basis, with reference to, among other factors, the financial condition, business operations and prospects of Multimedia, the market price of the Class A Shares, conditions in securities and debt markets generally, as well as general economic and industry conditions. Torstar may change its plans and intentions at any time, as it deems appropriate.

In the future, Torstar may, subject to any limitations imposed by applicable securities laws, at any time and from time to time: acquire additional equity and voting securities of Multimedia of any class or securities convertible or exchangeable for additional equity and voting securities of Multimedia of any class; dispose of any equity and voting securities of Multimedia of any class owned by Torstar; make advances to Multimedia in exchange for additional equity or debt securities of Multimedia or otherwise; or consider whether to make a proposal to acquire all of the issued and outstanding equity and voting securities of Multimedia of any class.


ABOUT TORSTAR CORPORATION

Torstar Corporation is a broadly based media company listed on the Toronto Stock Exchange (TS.B). Its businesses include the Star Media Group led by the Toronto Star, Canada's largest daily newspaper, and digital properties including thestar.com, toronto.com, Wheels.ca, Workopolis and Olive Canada Network; Metroland Media Group, publishers of community and daily newspapers in Ontario; and Harlequin Enterprises, a leading global publisher of women's fiction.

Torstar's news releases are available on the Internet at www.torstar.com.

Contact Information

  • Torstar Corporation
    David Holland
    Executive Vice-President & Chief Financial Officer
    (416) 869-4031
    Website: www.torstar.com