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EXHIBIT 99
[HOLLINGER LOGO AND GRAPHIC]
HOLLINGER INC., HOLLINGER INTERNATIONAL INC., AND ITS AFFILIATES
ANNOUNCE THE SALE OF CDN $3.5 BILLION OF CANADIAN ASSETS TO
CANWEST GLOBAL COMMUNICATIONS CORP.
Toronto - July 31, 2000: Hollinger Inc. (TSE:HLG.C), Hollinger
International Inc. ("Hollinger") (NYSE: HLR), Southam Inc. and Hollinger
Canadian Newspapers, Limited Partnership ("Hollinger L.P.") (TSE: HCN.UN)
announce that an agreement has been entered into to sell to CanWest Global
Communications Corp. ("CanWest") (NYSE: CWG; TSE, WSE: CGS.S and CGS.A) for
approximately CDN $3.5 billion, subject to adjustments, the following assets:
o a 50% interest in the National Post, while continuing as managing
partner;
o their metropolitan and a large number of their community newspapers in
Canada (including the Ottawa Citizen, Vancouver Sun, the Province, the
Calgary Herald, the Edmonton Journal, the Montreal Gazette, The Windsor
Star, The Regina Leader Post, the Star Phoenix and The Victoria
Times-Colonist);
o the Southam Magazine and Information Group, and
o their operating Canadian Internet properties including canada.com.
The purchase price will be payable as to approximately CDN$700 million in shares
of CanWest and as to the balance, 75% in cash and 25% in subordinated debentures
of a senior company in the CanWest group. Hollinger will nominate two directors
to the CanWest Board, commensurate with its opening equity interest of 15%.
Conrad Black, Hollinger's Chairman and CEO, will be the Chairman of the National
Post. With respect to the other newspaper assets being sold to CanWest, Mr.
Black and his associates will enter into a management services agreement for at
least 17 months in order to ensure operating continuity and to facilitate a
smooth transition to the new arrangements.
The sale is expected to be completed at the end of September. Hollinger
will use the cash proceeds to eliminate bank debt and possibly to cancel
debentures and shares and create a substantial reserve of liquid assets.
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The properties to be sold by Hollinger L.P. do not include the UniMedia
group in Quebec and many community papers based in Ontario and British Columbia.
A list of the businesses being sold is attached to this press release.
This transaction is consistent with Hollinger's stated objective for its
Canadian restructuring initiative launched earlier this year. The sale price
reflects the full enterprise value of the assets to be sold with the newspapers
being valued at approximately 10 times EBITDA. Through its 15% shareholding in
CanWest, its 50% direct interest in the National Post and as continuing manager
of these assets, Hollinger will continue to participate in the future growth and
exploitation of the franchise value of the assets in conjunction with CanWest's
television, cable channel, radio and other Canadian and international media
assets. Mr. Black stated: "Since gaining control of Southam in 1996, Hollinger
has made great strides in improving the editorial quality as well as the
profitability of its newspapers in Canada. Commencing with the Ottawa Citizen in
1997 and thereafter throughout its metropolitan and many of its community
newspapers, Hollinger has enhanced editorial content and enlarged opportunities
for Canadian print journalists. The launch of the National Post 21 months ago
has thoroughly revitalized the Canadian newspaper industry. Nevertheless, there
continues to be an audible body of opinion that holds that the newspaper
industry has entered a period of stagnation or even decline. We strenuously
disagree with this and look forward to demonstrating both the fallacy of this
view and the enduring vitality of quality newspaper assets intelligently managed
and imaginatively linked with other media. Hollinger believes this intimate
association with a highly successful telecaster built by an entrepreneurial
spirit compatible with Hollinger is the best possible assurance of the strength
of the newspaper franchises and of the prospects and security of all who work in
them. With CanWest we look forward to new and profitable convergence
opportunities on a scale that is unique in the world. We retain complete
flexibility to hold, reduce or increase to fuller partnership our interest in
CanWest Global".
In addition to its interests in CanWest, the National Post, other Canadian
newspapers and The Jerusalem Post, Hollinger will continue to own The Telegraph
Group Limited in Britain, the Chicago Sun-Times, a large number of community
newspapers in the Chicago area and Hollinger Ventures (Hollinger's new media
investment subsidiary), none of which were offered for sale.
Mr. Black added, "This transaction and some smaller anticipated disposals
of U.S. community newspapers not in the Chicago area represent a significant
step toward what we committed to undertake last April in an effort to
demonstrate the enterprise value of Hollinger's assets, both as traditional
newspaper properties and as content and transactional Internet platforms. As I
have stated over the last several months, Hollinger International expects to
emerge from this process with a drastically reduced debt level and smaller
number of outstanding shares, a stronger strategic position in relation to other
media (and especially new media), appreciably higher earnings per share, and a
large cash reserve with which to take the company forward to the next stage of
its
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development. The demonstrable realization of the company's underlying values
fully supports management's predictions."
CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS
Certain statements made in this release are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995
(the "Act"). Forward-looking statements include, without limitation, any
statement that may predict, forecast, indicate, or imply future results,
performance or achievements, and may contain the words "believe,"
"anticipate," "expect," "estimate," "project," "will be," "will continue,"
"will likely result," or similar words or phrases. Forward-looking
statements involve risks and uncertainties which may cause actual results
to differ materially from the forward-looking statements. The risks and
uncertainties are detailed from time to time in reports filed by Hollinger
International with the Securities and Exchange Commission, including in its
Prospectus and its Forms 10-K and 10-Q. New risk factors emerge from time
to time and it is not possible for management to predict all such risk
factors, nor can it assess the impact of all such risk factors on the
Company's business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those contained
in any forward-looking statements. Given these risks and uncertainties,
investors should not place undue reliance on forward-looking statements as
a prediction of actual results.
For more information contact:
Jack A. Boultbee
Executive Vice-President & Chief Financial Officer
Hollinger Inc.
(416) 363-8721
Peter Y. Atkinson
Executive Vice-President & General Counsel
Hollinger Inc.
(416) 363-8721
Paul B. Healy
Vice-President
Hollinger International Inc.
(212) 586-5666
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7
A. QUEBEC
(A) MONTREAL GAZETTE
B. ONTARIO
(A) OTTAWA CITIZEN
(B) THE SARNIA OBSERVER GROUP
The Observer
TV Listings
Scope
The Marketplace
Real Estate Guide
Travellin' Times
(C) THE WINDSOR STAR GROUP
The Windsor Star
TV Listings
Shop Windsor
Forever Young
Bargain Bundle
(D) THE CHATHAM DAILY NEWS GROUP
Chatham Daily News
TV Listings
Chatham Kent Citizen
Home Hunters Guide
(E) THE BRANTFORD EXPOSITOR GROUP
The Expositor
Midweek
Weekender
TV Listings
Home Buyers Guide
Fifty Plus
(F) THE NIAGARA GROUP
The Dunnville Chronicle
Niagara Falls Review
The Welland Tribune
Weekend Update
Import
The Welland News
(G) THE ST. CATHARINES GROUP
St. Catharines Standard
SOCN - Rannie Group
Weekend Edition
Niagara Advance
The Times
The Shopping Times
Niagara Shopping News
Regional Shopping News
St. Catharines Shopping
(H) THE SOCN GROUP
The Brabant Group
Ancaster News
Dundas Star News
Hamilton News-Mountain Edition
Stoney Creek News
Hamilton Real Estate Guide
New Home News
Flamborough Review
The Fairway Group
New Hamburg Independent
Cambridge Times
Guelph Tribune
Waterloo Chronicle
Durham Post
C. SASKATCHEWAN
(A) AD VENTURES
(B) THE MOOSE JAW TIMES GROUP
Times-Herald
This Week
Rural Shopper
(C) THE PRINCE ALBERT DAILY HERALD
Daily Herald
Rural Roots
Advantage
Northern Visitor
Channels
(D) THE REGINA GROUP
The Regina Leader Post
The Regina Sun
The Regina Advertiser
TV Times
Road and Wheel
Armadale Graphics
(E) THE SASKATOON STAR PHOENIX GROUP
The Star Phoenix
TV Listings
Saskatoon Sun
Saskatoon Shopper
(F) SWIFT CURRENT GROUP
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8
The Southwest Booster
The City Sun
D. ALBERTA
(A) EDMONTON GROUP
Edmonton Journal
The Flyer Force
(B) CALGARY GROUP
Calgary Herald
Flyer Force Calgary
E. BRITISH COLUMBIA
(A) VANCOUVER GROUP
The Vancouver Sun
The Province
Lower Mainland Publishing
Burnaby Now
The Record New Westminster
The Now Community
Langley Advance
Abbotsford Times
Chilliwack Times
Maple Ridge Times
Coquitlam Times Now
Richmond News
Delta Optimist
Vancouver Courier Eastside
Vancouver Courier Westside
Vancouver Courier Downtown
North Shore News
Real Estate Weekly
(B) THE PORT ALBERNI GROUP
Alberni Valley Times
Pennyworth Shopper
Westerly News
(C) THE NANAIMO DAILY NEWS GROUP
The Nanaimo Daily News
Harbour City Star
Real Estate Guide
Monthly Star Homes
TV Listings
(D) THE VICTORIA TIMES-COLONIST
F. ATLANTIC
(A) THE HALIFAX DAILY NEWS
(B) THE ATLANTIC GROUP
Bathurst Northern Light
Cape Breton Post
Evening News
Truro Daily News
Marketplace Today
Post Record
CB Post Real Estate Guide
Island Shopper
Pictou County This Week
TV Scene (New Glasgow)
Real Estate Guide (Truro)
Helpful Pages Telephone Book (Truro)
North Nova Shopper
Northumberland Business Report
Colchester Sunday
TV Scene (Truro)
Real Estate Guide (New Glasgow)
Helpful Pages Telephone Book (New Glasgow)
(C) THE CHARLOTTETOWN GUARDIAN GROUP
The Guardian
Vacation PEI
The Insider
Seniors
Off Island Islander
Real Estate Guide
Helpful Pages
(D) THE SUMMERSIDE GROUP
The Journal Pioneer
Island Harvest
TV and Real Estate
Buyers Guide
Irwin Printing
Williams & Crue Printing
(E) THE NEWFOUNDLAND GROUP
St. John's Telegram
Weekly EXTRA
TV Scene
Home Buyers Guide
The Corner Brook Western Star
TV Scene
Star Plus
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9
G. SOUTHAM MAGAZINE & INFORMATION GROUP
(A) AUTOMOTIVE
Automotive Service Data Book
Auto Vision
Body Shop
Jobber News
L'automobile
Le Body Shop
Service Station and Garage Management
(B) COMMUNICATIONS
Broadcaster
Cablecaster
New Media.pro
(C) CONSTRUCTION
Cabling Systems
Canadian Architect
Canadian Consulting Engineer
Landscape/Paysages
(D) DENTAL HEALTH
Dental Practice Management
Oral Health
(E) ENERGY
New Technology Magazine\Petroleum Explorer
Nickle's Energy Group
Daily Oil Bulletin and Online
Canadian Oil Register
P.O.S.T. Report
Energy Analects
Statistics Quarterly
Energy Information Services
New Technology Magazine
Petroleum Ownership Structures
Nickle's Directory Series/Online
Petroleum Explorer
(F) ENVIRONMENTAL INDUSTRY
Hazardous Materials Management
Solid Waste Recycling
Ecology Week
ERIS
Other Environmental Information
(G) FINANCIAL
Mutual Fund Source Book
Fund Profiler
(H) INSURANCE
Canadian Underwriter
Canadian Underwriter
Statistical Issue
Ontario Insurance Directory
(I) MANUFACTURING
Canadian Industrial Equipment News
Canadian Transportation Logistics
Laboratory Product News
Laboratory Buyer's Guide
Machinery & Equipment
Industrial Sales-Scott's Directories
(J) MEDICAL
Southam Medical
Southam Medical Lists
The Drugstore File
Dental Directories
Canadian Health Facilities Directory
(K) MINING
American Mines Handbook
Canadian Mines Handbook
Canadian Mining Journal
Mining Source Book
Canadian MineSCAN
Mining Source Book
Northern Miner Newspaper
Northern Miner Combo
Northern Miner CD
Northern Miner On line daily
Northern Miner On line weekly
American MineSCAN
Northern Miner Daily Facts
The Northern Miner Conferences
(L) OCCUPATIONAL HEALTH AND SAFETY
OH&S Canada
Back to Work
Canadian Occupational Health and Safety News
(M) PLASTICS
Canadian Plastics
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Canadian Plastics Directory & Buyers Guide
Canadian Source Book
(N) PULP & PAPER
Convention Reporter
Les Papiers du Quebec
Pulp & Paper Canada
Pulp & Paper Annual Directory
(O) REFERENCE/EDUCATION
Scott's Government Index
Scott's Directory of Canadian Associations
(P) RETAIL
Centre Magazine
Gifts and Tableware
Gifts and Tablewares Annual Directory
(Q) TRUCKING
Motor Truck
Truck News
Truck West
