ZoomerMedia has announced that founder Moses Znaimer, together with several other shareholders, have entered into a definitive agreement to privatize the company.
Founded by Znaimer in 2008, ZoomerMedia currently operates five TV channels, three radio stations, two print and 21 digital properties, from its 2.6-acre complex in Toronto’s Liberty Village.
In an announcement on Friday, the company said based on the unanimous recommendation of an independent committee of its board of directors, ZoomerMedia has entered into a definitive agreement with members of the shareholder group to acquire all issued and outstanding common shares they don’t currently own. The group currently holds approximately 75.83% of company stock, of which 60.26% is owned by Znaimer.
Subject to certain conditions, more than $5.69M in funding for the acquisition of the minority shares will be provided by Fairfax Financial Holdings, with another $1M provided by a company controlled by ZoomerMedia Chief Operating Officer, Omri Tintpulver.
Under terms of the agreement, minority shares will be acquired under an all-cash consideration of $0.08 per share, representing a premium of approximately 167% to ZoomerMedia’s closing share price on the TSX Venture Exchange last week.
