Nordstar, owner of Toronto Star, discusses merger with Postmedia

Postmedia Network Canada Corp. has confirmed it is in talks to merge with Nordstar Capital LP, the owner of Metroland Media Group and the Toronto Star.

The publisher says the proposed merger would create an even distribution of voting rights between the two companies, while Postmedia shareholders would have a 56 percent economic interest and Nordstar a 44 percent interest.

According to the Postmedia statement, Jordan Bitove, publisher of the Toronto Star and owner of Nordstar, would become chairman of the merged entity and Andrew MacLeod, CEO of Postmedia, would become CEO.

Postmedia says talks to consider a merger are non-binding so far and there is no guarantee a deal will be reached.

The proposal would ensure that the Toronto Star maintains editorial independence through the creation of a new company to manage its editorial activities.

Postmedia says the deal involves converting a portion of outstanding debt into equity, resulting in “significant economic dilution” for existing shareholders.