Mexican billionaire Carlos Slim is usually going to cut his stake in fresh York Times Company, Bloomberg News reported.
Bloomberg said Slim’s company sold $250 million of trust securities to hedge funds earlier which month, which gives the buyers “a claim on” 9 percent position within the media company, according to a person with knowledge of the matter.
The report said the trust securities will convert into fresh York Times shares in three years. Following the conversion, Slim will own 8 percent of the company.
“In essence, the billionaire created a trust, pledged fresh York Times shares to which, locked the shares up for three years, then sold rights to which stock to investors,” the article said.
Slim owned 17 percent of the company as of July 28, according to FactSet.
A fresh York Times spokesperson sent the following statement when asked for comment with which story:
“Carlos Slim became a shareholder of The fresh York Times Company at a critical time within the company’s history. The company today features a strong balance sheet in addition to strongly growing digital revenues. We are grateful for Mr. Slim’s confidence in addition to support of the company.”
CNBC has confirmed the transaction.
fresh York Times’ stock traded roughly flat Tuesday.
See here for the full Bloomberg News report.
— CNBC’s Michelle Caruso-Cabrera contributed to which report