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Coquitlam Now part of major newspaper sale

The Coquitlam Now and the Lower Mainland newspaper chain it is part of have been sold along with three B.C. daily newspapers. Postmedia Network Inc.

The Coquitlam Now and the Lower Mainland newspaper chain it is part of have been sold along with three B.C. daily newspapers.

Postmedia Network Inc. sold Postmedia Community Publishing, the Victoria Times Colonist, the Nanaimo Daily News and Alberni Valley Times to Glacier Media Inc. for $86.5 million sale, Postmedia announced on its website today.

The net proceeds are to be used for Postmedia's debt repayment.

In a press release, president and CEO Paul Godfrey said: "We are pleased to announce a transaction that realizes the value of the community newspaper groups in Western Canada along with the Times Colonist, a newspaper with a proud 153-year history. The transaction allows us to pay down debt and focus on our core properties, the ongoing transformation of our organization and growth areas of our business."

Glacier Media made "an unsolicited offer" for the papers, the statement said. Digital properties associated with the papers and some real estate listings are also part of the sale; however, it does not include the Vancouver Sun or the Province newspapers, or the company's Windsor-Essex community newspapers. The deal is expected to close by Nov. 30.

Glacier Media publishes a number of community newspapers and trade publications in Western Canada.

Below is the full text of the Postmedia press release on its website:

Postmedia Network Inc., a wholly owned subsidiary of Postmedia Network Canada Corp. ("Postmedia" or "the Company") today announced a definitive agreement to sell daily newspapers the Times Colonist, Nanaimo Daily News and Alberni Valley Times and its community newspaper properties in British Columbia to affiliates of Glacier Media Inc. for gross proceeds of $86.5 million, the net proceeds of which are to be used for debt repayment.

"We are pleased to announce a transaction that realizes the value of the community newspaper groups in Western Canada along with the Times Colonist, a newspaper with a proud 153-year history," said Paul Godfrey, President & CEO. "The transaction allows us to pay down debt and focus on our core properties, the ongoing transformation of our organization and growth areas of our business."

The acquisition was the result of an unsolicited offer for the Vancouver Island newspapers and Lower Mainland BC community newspaper properties.

Included in the transaction are three daily newspapers and 20 weekly and biweekly community publications including: North Shore News, Vancouver Courier and Surrey Now. The deal does not include Postmedia's Vancouver daily newspapers: the Vancouver Sun and The Province or the company's Windsor-Essex community newspapers.

"Postmedia's business strategy for Fiscal 2012 is transformation and revenue development" said Mr. Godfrey. "As we look ahead, our success will be in finding new opportunities for growth while transforming our organization to meet the very real changes in our industry. We remain committed to our digital first focus now and into the future."

The deal is subject to customary closing conditions and regulatory approvals and is expected to close on or about November 30, 2011.