TEGNA, other owners, sell CareerBuilder to Apollo Global Mgnt and Ontario Teachers’ Pension Plan Board
The Ontario Teachers’ Pension Plan Board is also involved in an attempt to acquire the assets of Fairfax Media, partnering with the private equity company TPG in that bid
McLEAN, Va. — June 19, 2017 — TEGNA Inc. today announced it has entered into a definitive agreement, together with the other owners of CareerBuilder, a global leader in human capital solutions, to sell CareerBuilder to an investor group led by investments funds managed by affiliates of Apollo Global Management, LLC (NYSE: APO), a leading global alternative investment manager, and the Ontario Teachers’ Pension Plan Board. TEGNA’s estimated cash proceeds from the sale are expected to be approximately $250 million, which will be used to retire existing debt and for other general corporate purposes.
As part of the agreement, TEGNA will remain an ongoing partner in CareerBuilder, reducing its current 53% controlling interest to 12.5% on a fully-diluted basis once the proposed transaction is complete. As a result, CareerBuilder will no longer be consolidated within TEGNA’s reported operating results and will instead be reflected as an equity investment within TEGNA’s financial statements.
The proposed transaction is subject to receipt of customary regulatory approvals and satisfaction of other conditions and is expected to close in the third quarter of 2017. TEGNA was advised by Morgan Stanley on the proposed transaction and was also assisted by Greenhill & Co. Wachtell, Lipton, Rosen & Katz acted as legal advisor.
(Note: TEGNA is the broadcast company created with the split of Gannett, with the newspaper division retaining the ‘Gannett’ name.)