Mexican billionaire Carlos Slim is about to seal a deal to invest $250 million in the New York Times. He already owns 6.4% of the Times Company. He bought more than 9 million shares of the company back in September at $128 million. Those shares are now worth about $58 million. But that has obviously not deterred him from investing more in what he considers to be “a great newspaper, the best of the world. A great brand.”
The NYT reports that under the terms of the deal Mr. Slim would invest $250 million in the form of 10-year notes with warrants that are convertible into common shares. As part of his investment, which resembles a loan, he is expected to get a special annual dividend, which could be as high as 10% or more on the investment.
Mr. Slim apparently is not looking to get any representation on the company’s board or any shares with special voting rights like those of the Sulzberger family, which controls the company. However, he would become the largest shareholder in the Times Company, owning about a third of the common stock.
The company’s board is meeting today to discuss the deal. An announcement could come as soon as tomorrow.