Canwest Reaches Deal to Unload CHEK-TV

WINNIPEG: Canwest Global Communications has reached a deal to sell off its CHEK-TV station in Victoria—after announcing plans to shutter the outlet last month—to a group of local investors for a "nominal purchase price."

In July, Canwest said it would close down two of its E! affiliated stations, in Victoria and Red Deer, at the end of August. The company said it was the only option for the two stations, which had been on the auction block since February. Canwest had already clinched deals to sell CJNT-TV in Montreal and CHCH-TV in Hamilton to the independent television broadcaster Channel Zero, which operates the Movieola and Silver Screen Classics specialty networks. CHBC-TV in Kelowna, meanwhile, became a Global affiliate as of September 1. 

For a nominal purchase price that was not disclosed, the local investor group—members of which were also not disclosed—will take ownership of the conventional television station’s assets, pending approval by the Canadian Radio-television and Telecommunications Commission. Canwest has agreed to provide "transitional support services and leased space in the CHEK station building at favourable rates." 

Leonard Asper, the president and CEO of Canwest, noted: “Many dedicated individuals on both sides of the table came together and the result is that it has preserved jobs and service in the community. One week ago, we thought that this station was going to close and today we have a result that is beneficial for all parties. The real winners are the people of Vancouver Island and the Lower Mainland who will continue to receive this valuable local service.”