Court Approves Shaw’s Canwest Deal

WINNIPEG: The Ontario Superior Court of Justice has cleared Shaw Communications’ C$95 million deal to take control of the restructured Canwest Global.

The agreement sees the Canadian cable operator purchasing C$95 million in Class A voting shares of the restructured Canwest, representing a 20-percent equity interest and an 80-percent voting interest. The deal values the restructured Canwest at C$475 million. Shaw has also agreed to fund cash payments to certain affected creditors of the company, which would result in its equity interest increasing above the initial 20 percent.

The restructured Canwest Global will be positioned as a pure-play broadcasting company, operating as a private entity. The investment was structured whereby Shaw has the flexibility to increase its ownership in the future.