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Southam stake sale approved

John Shepherd
Friday 26 March 1993 19:02 EST
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CONRAD BLACK'S sensitive plans to sell half his 22.5 per cent stake in Southam, the Canadian newspaper group, to The Telegraph, the quoted UK company he controls, are back on track, writes John Shepherd.

Independent directors of The Telegraph, publisher of the daily and Sunday newspapers of the same name, unanimously approved the Cdollars 94.5m (pounds 52m) deal at a board meeting late on Thursday evening.

The deal was delayed last week after the discovery that Power Corp was also buying a stake in Southam at Cdollars 4.10 less per share than the Telegraph was paying. The Telegraph is buying the stake at Cdollars 18.10 a share from Hollinger, Mr Black's private investment company. Power is paying Cdollars 14 for new shares being issued by Southam, which will dilute Hollinger's and the Telegraph's joint holding to 18.7 per cent.

Sir Frank Rogers, deputy chairman and senior independent director of the Telegraph, said the board accepted because 'that's the deal we were offered. If we didn't accept that price the deal would be off'. Minority shareholders in the Telegraph have yet to vote on the move.

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