Lee Enterprises, which in 2022 outlasted an attempt by Alden
Global Capital to acquire it, has been presented with a recapitalization plan by Hoffman Family of Companies, a significant shareholder.
Hoffman, which was blocked in an earlier
bid to acquire Lee, is trying something different.
The proposal includes a $25 million investment in newly issued common equity at a price of $2 per share,
Hoffman has announced.
This would imply a pre-money enterprise valuation of roughly $462 million, Hoffman says. This is based on the current debt
obligations and outstanding shares.
Hoffman acknowledges that cooperation would be needed from BH Finance, Lee’s senior lender, and the firm’s
management and board. It adds that there is no guarantee the transaction will be achieved.
In March, Hoffman announced that it wanted to acquire the
entire company.
Lee promptly extended its shareholder rights plan for one year, to March 27, 2026, potentially halting any such
deal.
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