(Reuters) - Tribune Publishing Co (NASDAQ:TPCO) said on Tuesday its largest shareholder, Alden Global Capital, will buy shares it does not already own in the company at $17.25 each in cash and turn the owner of the Chicago Tribune into a privately held firm.
Alden's offer represents a premium of 45% to the closing price of Tribune common stock on Dec. 11, the publisher said in a statement.
The hedge fund, known for its hostile takeover bids of publishing companies, had a 32% stake in Tribune prior to the transaction.
Tribune Publishing, which also owns the New York Daily News and the Baltimore Sun, has seen a decline in revenue this year as the COVID-19 pandemic hammers the publishing industry.
The company's board on Tuesday approved the buyout following a recommendation by a special committee it had formed in December to act on its behalf in respect of Alden's offer.
Along with the buyout, Alden also signed a non-binding term sheet to sell The Baltimore Sun to Sunlight for All Institute, a public charity formed by Stewart Bainum Jr, according to Tribune's statement.
The transaction is expected to close in the second quarter of 2021, the publisher said.