Shaw Takes Canwest Global Stake

CALGARY: Canadian pay-TV provider Shaw Communications is taking a controlling stake in the restructured Canwest Global Communications Corp.

Shaw said today that it is picking up a minimum 20-percent equity interest and 80-percent voting interest, giving it effective control of the restructured Canwest once it emerges from creditor protection. The restructuring, announcing in October, leaves Canwest Global as a pure-play broadcasting company, independent from Canwest’s newspaper assets.

"We are excited about the investment and gaining effective control of one of the premier broadcasters and owners of content in the Canadian broadcasting industry at a reasonable valuation," said Jim Shaw, CEO and vice chair of Shaw Communications. "We believe that Shaw’s investment results in a number of benefits to the broadcasting system, including an ability to strengthen local programming, ensure the ongoing viability of the second largest private conventional television network in Canada, and sustain a dynamic and competitive television market."

“We are very pleased with the firm investment commitment from Shaw,” said Derek Burney, the chairman of Canwest’s Board of Directors. “While there is much work still to be done, Shaw’s commitment represents an important step towards a successful financial restructuring of Canwest and is supported by the Company and the members of the Ad Hoc Committee. We look forward to benefitting from Shaw’s participation in a reinvigorated Canwest, as it is a strong business partner with a proven commitment to the Canadian television broadcasting industry. This significant investment in conventional television should be seen as a big vote of confidence in the industry and its future.”

The investment is subject to approval by the Court in Ontario overseeing the restructuring, as well as by credits and the Canadian Radio-television and Telecommunications Commission.

Shaw serves 3.4 million customers with broadband cable, high-speed Internet, digital phone and satellite DTH offerings. The restructured Canwest Global includes the Global TV network as well as a selection of specialty channels.