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HOLLINGER SELLS COMMUNITY NEWSPAPERS

Hollinger Canada Newspapers has sold most of its remaining Canadian newspapers for $220 million in cash to a group comprised of Scotia Merchant Capital, the Ontario Teachers' Pension Plan Board and a company controlled by Michael Sifton. Last year the publisher sold its Canadian newspaper chain, Internet properties, magazines, most of its community publishing operations and 50% of the National Post to CanWest Global Communications Corp. Included in yesterday's sale are Ontario community newspapers The Kingston Whig-Standard, The Sault Star and the Peterborough Examiner. Once the sale has been completed, Hollinger's remaining wholly-owned assets will consist of its trade publications, its directory publishing division, newspapers in Chatham and Sarnia and a group of paid and non-paid newspapers in British Columbia.

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