Shaw’s Canwest Deal to Close This Week

CALGARY: With approval granted by the Canadian Radio-television and Telecommunications Commission (CRTC), Shaw Communications’ acquisition of Canwest Global Communications Corp.’s broadcasting assets is expected to close October 27.

Shaw is taking control of the over-the-air and specialty television businesses of Canwest, including Canwest’s equity interests in CW Investments, the subsidiary holding the portfolio of specialty television channels acquired from Alliance Atlantis Communications. As part of the approval from CRTC, Shaw must contribute C$180 million in new benefits to the broadcasting system over the next seven years. This includes new programming for the Canwest stations, the construction of digital transmission towers and a satellite solution for over-the-air viewers whose local television stations do not convert to digital.

“We are pleased with the comprehensive and expeditious review of the transaction conducted by the CRTC," said Jim Shaw, CEO and vice chair. "We felt that we had a constructive and positive dialogue with the CRTC, and other interested parties, with respect to the transaction’s impact on the Canadian broadcasting industry. We look forward to strengthening the industry going forward through innovation, technology enhancements, additional investment, and a commitment to strong and economically viable Canadian programming."

The aggregate purchase price to be paid by Shaw for the Canwest broadcasting assets, including the amounts paid prior to closing to acquire the shares of CW Investments and the net debt of C$815 million, will be approximately C$2 billion.

Shaw has also named a new CEO, Bradley Shaw, effective January 13, with Jim Shaw announcing his resignation