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DAVENPORT, Iowa – Lee Enterprises, Incorporated (NASDAQ: LEE), a leading provider of local news and information, currently trading at $10.04 per share with a market capitalization of approximately $61 million, has announced the unanimous approval by its Board of Directors to extend the company’s shareholder rights plan for an additional year, now set to expire on March 27, 2026. According to InvestingPro analysis, the company’s stock has seen a significant 17% return over the past week. This move follows an unsolicited acquisition interest from The Hoffmann Family of Companies, which became public on March 20, 2025.
The rights plan, originally adopted in March 2024, was a response to a significant accumulation of Lee’s common stock by a competing digital publishing business. The extension comes as Hoffmann has acquired approximately 9.8% of Lee’s outstanding common stock and has made public its intention to potentially acquire the company. InvestingPro data reveals the company operates with a substantial debt burden of $481 million and a concerning current ratio of 0.78, indicating potential liquidity challenges that could influence acquisition discussions.
Despite Hoffmann’s interest, the company’s board has not specified any timetable or decisions concerning the takeover interest. Lee Enterprises has offered to enter a confidentiality agreement with Hoffmann to share information that could lead to a formal acquisition proposal. With revenue of $600 million in the last twelve months and an EBITDA of $42.5 million, the company’s financial position warrants careful consideration. Get deeper insights into Lee’s valuation and 8 additional key financial indicators with InvestingPro’s comprehensive analysis tools.
The rights plan aims to ensure fair and equal treatment for all shareholders in the event of any proposed takeover and to prevent control of the company without offering an appropriate premium to all shareholders. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading near its fair value, with analysts setting a target price of $20 per share. Lee’s management and board emphasize their commitment to acting in the best interests of all shareholders and will review any credible proposal to determine the optimal course of action.
The amendment to the rights plan does not alter any other terms, and it will expire on March 27, 2026, unless the board decides to terminate it earlier. Details regarding the amendment will be disclosed in a Form 8-K to be filed with the U.S. Securities and Exchange Commission.
Lee Enterprises operates a major subscription and advertising platform, with a portfolio that includes daily newspapers, digital products, and nearly 350 weekly and specialty publications across 72 markets in 25 states. The company’s common stock is traded on NASDAQ under the ticker LEE.
This announcement is based on a press release statement from Lee Enterprises, and the company has stated it does not intend to disclose further developments regarding Hoffmann’s expression of interest unless it deems further disclosure appropriate or necessary.
In other recent news, Lee Enterprises has reported a significant cybersecurity breach that disrupted its operations. The incident, which occurred on February 3, 2025, resulted in a systems outage due to a cybersecurity attack that encrypted essential applications and potentially exfiltrated files. Lee Enterprises activated its incident response team, comprising internal and external cybersecurity experts, to address the issue, and a forensic investigation is ongoing to determine if sensitive data was compromised. The attack affected the distribution of print publications, causing delays, and partially limited online operations, though core product distribution has resumed. The financial impact of the breach is still being assessed, but it is expected to materially affect the company’s financial condition or results of operations. Lee Enterprises has a comprehensive cybersecurity insurance policy that is anticipated to cover associated costs, subject to policy limits and deductibles.
Additionally, during its recent annual shareholder meeting, Lee Enterprises’ shareholders approved executive compensation and amendments to the company’s long-term incentive plan. Mary E. Junck, Herbert W. Moloney III, and Kevin D. Mowbray were re-elected as directors for a three-year term. The shareholders also ratified the appointment of BDO USA, P.C. as the independent registered public accounting firm for the fiscal year ending September 28, 2025. These developments reflect the shareholders’ support for the company’s leadership and strategic direction.
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