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Broadcasting Decision CRTC 2005-17
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Ottawa, 21 January 2005 |
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Astral Media inc., on behalf of Astral
Media Radio inc.
Lévis, Quebec |
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Application 2003-0211-7
Public Hearing in the National Capital Region
7 September 2004 |
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Acquisition of assets – Intracorporate reorganization
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The Commission approves the
application by Astral Media inc., on behalf of Astral Media Radio inc.,
to acquire the assets of the radio programming undertaking CFOM-FM Lévis. |
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The application
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1. |
The Commission received an application by
Astral Media inc., on behalf of Astral Media Radio inc. (Astral Media
Radio), to acquire, as part of an intracorporate reorganization, the
assets of the radio programming undertaking CFOM-FM Lévis from
Entreprises Radio Etchemin inc. (Radio Etchemin). The applicant also
requested a broadcasting licence to continue the operation of the
undertaking. |
2. |
The applicant proposed to assume responsibility
for all outstanding tangible benefits relating to the transaction
approved in Transfer of control of Entreprises Radio Etchemin inc.
to Groupe Radio Astral inc., Decision CRTC 2001-95,
21 February 2001 (Decision 2001-95).
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3. |
CFOM-FM is currently operated by Radio
Etchemin. Mr. Paul-Émile Beaulne acts as trustee of Radio Etchemin under
a voting trust agreement approved by the Commission on 25 October 2002.
Mr. Beaulne exercises voting rights attached to Radio Etchemin shares.
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4. |
The Commission received one intervention in
support of the application. |
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The Commission’s determination
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5. |
The Commission notes that this application
follows an intracorporate reorganization within the Astral group,
approved in Intracorporate reorganization within the Astral group,
Broadcasting Decision CRTC 2003-138, 2 May 2003. The Commission
indicated in that decision that the step in the reorganization involving
the transfer of CFOM-FM assets would be addressed at a subsequent public
hearing. |
6. |
At the 7 September 2004 Public Hearing,
the Commission examined this application as well as applications submitted
by Astral Media Radio and 591991 B.C. Ltd., a wholly owned subsidiary
of Corus Entertainment Inc. (Corus), for authority to acquire several
radio undertakings in Quebec as part of an exchange of assets (the
Astral/Corus transaction). The Astral/Corus transaction also involves
the acquisition of CFOM-FM’s assets by Corus. The Commission has approved
the Astral/Corus transaction in Exchange of radio assets in Quebec
between Astral Media Radio inc. and a subsidiary of Corus Entertainment
Inc., Broadcasting Decision CRTC 2005-15
(Decision 2005-15),
issued today. |
7. |
This approval is subject to written confirmation
by Astral Media Radio and Corus, within 30 days of the date of Decision
2005-15, that
they will complete the transaction in accordance with the terms and
conditions set out in that decision. Failure to provide such confirmation
within the required timeframe will render the decision null and void,
and accordingly, Astral Media Radio will not be able to acquire the
assets of CFOM-FM. |
8. |
In the event that the parties complete
the transaction, the assets of CFOM-FM would be transferred from Radio
Etchemin to Astral Media Radio, and subsequently transferred to Corus
under the transaction approved in Decision 2005-15. |
9. |
In light of the above, the Commission
approves the application by Astral Media inc., on behalf of Astral
Media Radio inc., to acquire, as part of an intracorporate
reorganization, the assets of the radio programming undertaking CFOM-FM
Lévis from Radio Etchemin Inc. |
10. |
This approval is subject to written confirmation
by Astral Media Radio and Corus, within 30 days of the date of this
decision, that they will complete the Astral/Corus transaction in
accordance with the terms and conditions set out in Decision 2005-15.
Failure to provide such confirmation within the required timeframe
will render this decision null and void. |
11. |
Finally, the Commission notes the applicant’s
proposal to assume responsibility for all outstanding tangible benefits
relating to the transaction approved in Decision 2001-95,
and expects the applicant to adhere to its commitments in that respect.
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Issuance of the licence
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12. |
The Commission will issue a licence to Astral
Media Radio for the remainder of the term of CFOM-FM’s licence, which
expires on 31 August 2006, upon surrender of the current licence to
the Commission. The licence will be subject to the same terms and
conditions as those in effect under the current licence, as set out
in CFOM-FM Lévis – Licence renewal, Broadcasting Decision CRTC
2002-368,
14 November 2002. |
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Employment equity
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13. |
Because this licensee is subject to the
Employment Equity Act and files reports concerning employment equity
with the Department of Human Resources and Skills Development,
its employment equity practices are not examined by the Commission. |
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Secretary General |
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This decision is to be appended to the
licence. It is available in alternative format upon request, and may
also be examined at the following Internet site:
http://www.crtc.gc.ca |