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Exhibit 99.1
[HOLLINGER INTERNATIONAL LOGO]
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 development. The demonstrable realization of the company's underlying values
fully supports management's predictions."
Cautionary Statement on Forward-Looking Statements
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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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A. QUEBEC Niagara Shopping News
Regional Shopping News
St. Catharines Shopping
(A) MONTREAL GAZETTE (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
B. ONTARIO C. SASKATCHEWAN
(A) OTTAWA CITIZEN (A) AD VENTURES
(B) THE SARNIA OBSERVER GROUP (B) THE MOOSE JAW TIMES GROUP
The Observer Times-Hearld
TV Listings This Week
Scope Rural Shopper
The Marketplace
Real Estate Guide
Travellin' Times
(C) THE WINDSOR STAR GROUP (C) THE PRINCE ALBERT DAILY HERALD
The Windsor Star Daily Herald
TV Listings Rural Roots
Shop Windsor Advantage
Forever Young Northern Visitor
Bargain Bundle Channels
(D) THE CHATHAM DAILY NEWS GROUP (D) THE REGINA GROUP
Chatham Daily News The Regina Leader Post
TV Listings The Regina Sun
Chatham Kent Citizen The Regina Advertiser
Home Hunters Guide TV Times
Road and Wheel
Armadale Graphics
(E) THE BRANTFORD EXPOSITOR GROUP (E) THE SASKATOON STAR PHOENIX GROUP
The Expositor The Star Phoenix
Midweek TV Listings
Weekender Saskatoon Sun
TV Listings Saskatoon Shopper
Home Buyers Guide
Fifty Plus
(F) THE NIAGARA GROUP (F) SWIFT CURRENT GROUP
The Dunnville Chronicle The Southwest Booster
Niagara Falls Review The City Sun
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
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<TABLE>
<S> <C>
D. ALBERTA (B) THE ATLANTIC GROUP
Bathurst Northern Light
(A) EDMONTON GROUP Cape Breton Post
Edmonton Journal Evening News
The Flyer Force Truro Daily News
Marketplace Today
(B) CALGARY GROUP Post Record
Calgary Herald CB Post Real Estate Guide
Flyer Force Calgary Island Shopper
Pictou County This Week
E. BRITISH COLUMBIA TV Scene (New Glasgow)
Real Estate Guide (Truro)
(A) VANCOUVER GROUP Helpful Pages Telephone Book (Truro)
The Vancouver Sun North Nova Shopper
The Province Northumberland Business Report
Lower Mainland Publishing Colchester Sunday
Burnaby Now TV Scene (Truro)
The Record New Westminster Real Estate Guide (New Glasgow)
The Now Community Helpful Pages Telephone Book (New Glasgow)
Langley Advance
Abbotsford Times (C) THE CHARLOTTETOWN GUARDIAN GROUP
Chilliwack Times The Guardian
Maple Ridge Times Vacation PEI
Coquitlam Times Now The Insider
Richmond News Seniors
Delta Optimist Off Island Islander
Vancouver Courier Eastside Real Estate Guide
Vancouver Courier Westside Helpful Pages
Vancouver Courier Downtown
North Shore News (D) THE SUMMERSIDE GROUP
Real Estate Weekly The Journal Pioneer
Island Harvest
(B) THE PORT ALBERNI GROUP TV and Real Estate
Alberni Valley Times Buyers Guide
Pennyworth Shopper Irwin Printing
Westerly News Williams & Crue Printing
(C) THE NANAIMO DAILY NEWS GROUP (E) THE NEWFOUNDLAND GROUP
The Nanaimo Daily News St. John's Telegram
Harbour City Star Weekly EXTRA
Real Estate Guide TV Scene
Monthly Star Homes Home Buyers Guide
TV Listings The Corner Brook Western Star
TV Scene
(D) THE VICTORIA TIMES-COLONIST Star Plus
F. ATLANTIC
(A) THE HALIFAX DAILY NEWS
</TABLE>
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<TABLE>
<S> <C> <C> <C>
G. SOUTHAM MAGAZINE & INFORMATION GROUP (G) FINANCIAL
Mutual Fund Source Book
(A) AUTOMOTIVE Fund Profiler
Automotive Service Data Book
Auto Vision (H) INSURANCE
Body Shop Canadian Underwriter
Jobber News Canadian Underwriter Statistical Issue
L'automobile Ontario Insurance Directory
Le Body Shop
Service Station and Garage Management (I) MANUFACTURING
Canadian Industrial Equipment News
(B) COMMUNICATIONS Canadian Transportation Logistics
Broadcaster Laboratory Product News
Cablecaster Laboratory Buyer's Guide
New Media.pro Machinery & Equipment
Industrial Sales-Scott's Directories
(C) CONSTRUCTION
Cabling Systems (J) MEDICAL
Canadian Architect Southam Medical
Canadian Consulting Engineer Southam Medical Lists
Landscape/Paysages The Drugstore File
Dental Directories
(D) DENTAL HEALTH Canadian Health Facilities Directory
Dental Practice Management
Oral Health (K) MINING
American Mines Handbook
(E) ENERGY Canadian Mines Handbook
New Technology Magazine\ Canadian Mining Journal
Petroleum Explorer Mining Source Book
Nickle's Energy Group Canadian MineSCAN
Daily Oil Bulletin and Online Mining Source Book
Canadian Oil Register Northern Miner Newspaper
P.O.S.T. Report Northern Miner Combo
Energy Analects Northern Miner CD
Statistics Quarterly Northern Miner On line daily
Energy Information Services Northern Miner On line weekly
New Technology Magazine American MineSCAN
Petroleum Ownership Structures Northern Miner Daily Facts
Nickle's Directory Series/Online The Northern Miner Conferences
Petroleum Explorer
(L) OCCUPATIONAL HEALTH AND SAFETY
(F) ENVIRONMENTAL INDUSTRY OH&S Canada
Hazardous Materials Management Back to Work
Solid Waste Recycling Canadian Occupational Health and Safety News
Ecology Week
ERIS (M) PLASTICS
Other Environmental Information Canadian Plastics
Canadian Plastics Directory & Buyers Guide
</TABLE>
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(N) PULP & PAPER
Convention Reporter
Les Papiers du Quebec
Pulp & Paper Canada
Pulp & Paper Annual Directory
(O) REFERENCE/EDUCATION
Scott's Government Index
Canadian Source Book
Scott's Directory of Canadian Associations
(P) RETAIL
Centre Magazine
Gifts and Tablewares
Gifts and Tablewares Annual Directory
(Q) TRUCKING
Motor Truck
Truck News
Truck West
