Benzinga | Dec 9, 2021 09:45PM EST

Lee Enterprises Board of Directors Unanimously Rejects Unsolicited Proposal From Alden

Lee Enterprises, Incorporated (NASDAQ:LEE) ("Lee" or the "Company") today announced that its Board of Directors has unanimously rejected the unsolicited, nonbinding proposal received from Alden Global Capital, LLC (together with its affiliates, "Alden") on November 22, 2021 to purchase the Company for $24.00 per share in cash.



After careful consideration with its financial and legal advisors, Lee's Board determined that Alden's proposal grossly undervalues Lee and is not in the best interests of the Company and its shareholders.

"The Alden proposal grossly undervalues Lee and fails to recognize the strength of our business today, as the fastest-growing digital subscription platform in local media, and our compelling future prospects," said Lee Chairman Mary Junck. "We remain confident in our ability to create significant value as an independent company and are focused on our Three Pillar Digital Growth Strategy, detailed earlier this year. We have demonstrated accelerating momentum across our platforms as we execute our plan."

Junck added, "The core of Lee's strength and competitive advantage is steadfast commitment to high-quality local news that is deeply valued in the communities we serve. With a nimble, digital-first mindset, we are leveraging our brands and attractive market position, solid balance sheet, established digital infrastructure and digital marketing expertise, and talented team to drive recurring revenue growth and strong cash flow performance. Our digital transformation is well underway with strong momentum, as shown in our fourth quarter fiscal 2021 results reported today."

In a separate press release issued today, Lee reported strong fourth quarter fiscal 2021 results with continued operating revenue and Adjusted EBITDA growth driven by 37% growth in digital revenue, 65% growth in digital-only subscriptions and 71% growth in revenues from Amplified, Lee's full-service digital marketing agency. The Company also continued to strengthen its balance sheet through responsible cost management and debt repayment.

J.P. Morgan is acting as financial advisor and Kirkland & Ellis LLP and Lane & Waterman LLP are acting as legal advisors to Lee.