Facing interest from another company seeking to acquire majority ownership, the Lee Enterprises Board of Directors voted to extend a previous shareholders rights plan, the media company announced one day before that plan was set to expire.
The Davenport-based newspaper and digital media chain said in a Wednesday, March 26, news release that the one-year extension – which runs from today, March 27, to March 27, 2026 – was needed following “the unsolicited expression of interest from The Hoffmann Family of Companies … to acquire the Company.”
Last year’s shareholders protection efforts – which were extended Wednesday – came in response to significant accumulation of shares of Lee common stock in 2024 by Quint Digital Limited, an entity based in India.
Such plans often are designed to discourage any one shareholder from acquiring a controlling amount of stock, and to give a company time to consider any offer and determine what actions it might take to maximize shareholder value.
Hoffman Companies owns about 9.8% of Lee’s stock, making it the company’s second largest shareholder. Lee stock was trading early today at $9.96 and over the past 52 weeks stock value has ranged from $7.57 to $19.63. The Quad-City Times, The Dispatch and the Rock Island Argus and Muscatine Journal are among more than 350 weekly and specialty publications serving 73 markets in 26 states that Lee owns
Hoffman Board Chairman David Hoffman made Hoffman’s acquisition intentions known in a March 20 letter to Lee President Kevin Mowbray, and Lee’s board. It it, Mr. Hoffman said the Naples- and Chicago-based company told Lee it wants “to open discussions with you regarding a potential combination of our companies, in which the HF Companies would pursue acquisition of Lee in its entirety.”
Second takeover bid
“The Board had initially adopted the Rights Plan in March 2024 in response to a significant accumulation of shares of Lee common stock by a shareholder that controlled a digital publishing business that sought to compete with the Company’s subsidiary, BLOX Digital,” Lee said in Wednesday’s release.
Among the reasons for the extension Lee outlined were:
- Since October 2024, Hoffmann has issued multiple press releases highlighting its growing ownership position in Lee, its intention to become Lee’s largest shareholder, and its interest in acquiring Lee outright.
- On March 20, 2025, the company sent a letter to the Lee seeking to open discussions regarding a potential acquisition of Lee, but did not specify an acquisition price or any other material terms.
- The same day, Hoffmann made its expression of interest public.
The Lee release also said the board and Lee’s “management team are committed to acting in the best interests of all Lee shareholders. Consistent with its fiduciary duties, the Board will carefully review any credible proposal to determine the course of action that it believes is in the best interests of the Company and Lee shareholders.”
Lee opens discussion
Lee also said it will “work constructively with Hoffmann” to determine if an acquisition is worth pursuing and on March 24, 2025, the news organization offered “to enter into a confidentiality agreement to share certain confidential information that would allow Hoffmann to make a proposal with a price and outline its ability to finance a possible transaction.”
The release added, “The Board has not set a timetable for, nor has it made any decisions related to, any further actions with respect to Hoffmann’s expression of interest at this time.” It also said it will not disclose any further developments regarding Hoffman’s offer “unless and until it determines that further disclosure is appropriate or necessary.”
Lee Enterprises describes itself as a major subscription and advertising platform and a leading provider of local news and information, with daily newspapers, rapidly growing digital products and those weekly and specialty publications serving 72 markets in 25 states.
