Hollinger Inc. announced last Thursday that its wholly-owned subsidiary, Holcay Holdings Ltd, has entered into a repurchase agreement to sell all of its shares in Cayman Free Press Limited.
Holcay has a 39.99 per cent interest in Cayman Free Press Limited, which owns and operates the Caymanian Compass and numerous other publications in the Cayman Islands.
The repurchase agreement, which calls for CFP to buy all of the shares held by Holcay, provides for CFP to pay a cash dividend to all of its shareholders immediately prior to the closing of the sale transaction.
Aggregate proceeds from the sale of shares and Holcay’s share of CFP’s dividend are approximately CI$5.5 million.
The closing of the repurchase transaction is subject to CFP and its majority shareholder securing financing on satisfactory terms. Closing is expected to occur by 30 August, 2007.
CFP’s Brian Uzzell said the announcement was a little premature.
‘Our financing has not been confirmed at this stage,’ he said. ‘Yes, we intend to do it, but the financing has to be approved.’
Mr. Uzzell said the move was ‘part of the ongoing redevelopment of CFP’s assets.’