Jun 26, 2019
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CanWest boosts stake acquiring Alliance

TORONTO (CP) _ CanWest MediaWorks Inc. (TSX:CWM.UN) is boosting its stake in the joint company set to acquire Alliance Atlantis Communications Inc. (TSX:AAC.B) to $200 million from $132 million.

The CanWest Global Communications Corp. (TSX:CGS) subsidiary said Friday it has given notice to partner Goldman Sachs Capital Partners that it is exercising the right to increase its equity position in the $2.3-billion takeover of Alliance Atlantis.

"This is consistent with our ongoing commitment to enhance our existing television business by expanding in the specialty television sector," CanWest president and CEO Leonard Asper said in a release.

After the adjustment, CanWest will hold a 29 per cent stake, the rest held by Goldman Sachs.

Winnipeg-based CanWest plans to hold an interest in Alliance’s specialty channels, which in total are worth $1.5 billion, through a new subsidiary. In return, the company will put up the $200 million as well as its Global television network.

CanWest then plans to buy a full ownership of the specialty channels by 2011.

The outcome of the deal leans strongly on the financial performance of the combined broadcasting assets.

When the 2011 deadline approaches, CanWest and Goldman will divide the shares of the new company according its overall performance.

Units of CanWest MediaWorks were ahead five cents at $8.45 in afternoon trading in Toronto. Shares in parent CanWest rose eight cents to $11.61, while Alliance shares moved up one cent to $51.80.

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Headline, Industry News

CanWest boosts stake acquiring Alliance

TORONTO (CP) _ CanWest MediaWorks Inc. (TSX:CWM.UN) is boosting its stake in the joint company set to acquire Alliance Atlantis Communications Inc. (TSX:AAC.B) to $200 million from $132 million.

The CanWest Global Communications Corp. (TSX:CGS) subsidiary said Friday it has given notice to partner Goldman Sachs Capital Partners that it is exercising the right to increase its equity position in the $2.3-billion takeover of Alliance Atlantis.

"This is consistent with our ongoing commitment to enhance our existing television business by expanding in the specialty television sector," CanWest president and CEO Leonard Asper said in a release.

After the adjustment, CanWest will hold a 29 per cent stake, the rest held by Goldman Sachs.

Winnipeg-based CanWest plans to hold an interest in Alliance’s specialty channels, which in total are worth $1.5 billion, through a new subsidiary. In return, the company will put up the $200 million as well as its Global television network.

CanWest then plans to buy a full ownership of the specialty channels by 2011.

The outcome of the deal leans strongly on the financial performance of the combined broadcasting assets.

When the 2011 deadline approaches, CanWest and Goldman will divide the shares of the new company according its overall performance.

Units of CanWest MediaWorks were ahead five cents at $8.45 in afternoon trading in Toronto. Shares in parent CanWest rose eight cents to $11.61, while Alliance shares moved up one cent to $51.80.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Headline, Industry News

CanWest boosts stake acquiring Alliance

TORONTO (CP) _ CanWest MediaWorks Inc. (TSX:CWM.UN) is boosting its stake in the joint company set to acquire Alliance Atlantis Communications Inc. (TSX:AAC.B) to $200 million from $132 million.

The CanWest Global Communications Corp. (TSX:CGS) subsidiary said Friday it has given notice to partner Goldman Sachs Capital Partners that it is exercising the right to increase its equity position in the $2.3-billion takeover of Alliance Atlantis.

"This is consistent with our ongoing commitment to enhance our existing television business by expanding in the specialty television sector," CanWest president and CEO Leonard Asper said in a release.

After the adjustment, CanWest will hold a 29 per cent stake, the rest held by Goldman Sachs.

Winnipeg-based CanWest plans to hold an interest in Alliance’s specialty channels, which in total are worth $1.5 billion, through a new subsidiary. In return, the company will put up the $200 million as well as its Global television network.

CanWest then plans to buy a full ownership of the specialty channels by 2011.

The outcome of the deal leans strongly on the financial performance of the combined broadcasting assets.

When the 2011 deadline approaches, CanWest and Goldman will divide the shares of the new company according its overall performance.

Units of CanWest MediaWorks were ahead five cents at $8.45 in afternoon trading in Toronto. Shares in parent CanWest rose eight cents to $11.61, while Alliance shares moved up one cent to $51.80.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

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