Journal Communications Repurchases Stock
August 23, 2007 at 7:45 AM (PT)
JOURNAL COMMUNICATIONS has repurchased 3,200,000 shares of class B common stock from the Company’s founding family shareholder, MATEX INC., at $10.00 per share, for a total of $32.0 million. The purchase price reflects a 7.7% discount to the 10-day volume weighted average class A common stock closing price beginning on AUGUST 9th, 2007 and ending on AUGUST 22nd, 2007 and a 0.9% discount to the $10.09 closing price of class A shares on AUGUST 22, 2007.
MATEX INC. is a corporation controlled by members of the family of the Company’s former chairman, HARRY J. GRANT. Class B shares, which are not publicly traded, have 10 votes per share and are convertible into class A shares on a one-for-one basis. The repurchased stock, which has been retired, constituted approximately 20.6% of the company's 15,503,327 class B shares and 4.8% of its total common stock outstanding (classes A, B and C) at JULY 27, 2007.
In addition to the share repurchase, MATEX and the other GRANT family members agreed to a one-year lock-up on sales of their remaining JOURNAL shares and the elimination of their existing right to nominate a second director if the Company’s board were to increase to more than 11 directors.