By Katherine Hamilton
Hoffmann Family of Companies sent a letter to Lee Enterprises' board of directors expressing interest in supporting a recapitalization valuing the newspaper operator at $462 million.
Hoffmann Cos. said Friday it proposed a $25 million investment in newly issued common equity at $2 a share, alongside a $25 million backstopped rights offering to existing shareholders at the same price. That structure implies a valuation of $462 million based on Lee's current debt and outstanding shares, the family-owned private equity firm said.
The proposal requires cooperation from Lee's board and management, as well as its senior lender BH Finance.
Hoffmann Cos., which owned just under 10% of Lee's shares as of March, said earlier this year it was interested in buying the media company, which owns newspapers in 25 states.
Lee said at the time it would evaluate and respond to a specific offer if Hoffmann Cos. made one. Days later, Lee's board approved a rights plan aimed to "ensure that all shareholders receive fair and equal treatment in the event of any proposed takeover of the company."
Founder and chairman David Hoffmann said in March he had been having informal conversations with Lee's management team since October 2024, when Hoffmann Cos. first invested in Lee.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
By Katherine Hamilton
Hoffmann Family of Companies sent a letter to Lee Enterprises' board of directors expressing interest in supporting a recapitalization valuing the newspaper operator at $462 million.
Hoffmann said Friday it proposed a $25 million investment in newly issued common equity at $2 a share, alongside a $25 million backstopped rights offering to existing shareholders at the same price. That structure implies a valuation of $462 million based on Lee's current debt and outstanding shares, the family-owned private equity firm said.
Lee declined to comment.
The proposal requires cooperation from Lee's board and management, as well as its senior lender BH Finance.
Hoffmann, which owned just under 10% of Lee's shares as of March, said earlier this year it was interested in buying the media company, which owns newspapers in 25 states.
Lee said at the time it would evaluate and respond to a specific offer if Hoffmann made one. Days later, Lee's board approved a rights plan aimed to "ensure that all shareholders receive fair and equal treatment in the event of any proposed takeover of the company."
Founder and chairman David Hoffmann said in March he had been having informal conversations with Lee's management team since October 2024, when Hoffmann first invested in Lee.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
July 18, 2025 14:54 ET (18:54 GMT)
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