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Information
July 6, 2000
DIVISION OF WIC’S VARIOUS BROADCASTING
UNDERTAKINGS
AND UNREGULATED ASSETS BETWEEN
CANWEST GLOBAL, CORUS AND SHAW
Background
1998
- Sale of the Griffiths family holdings in WIC Western
International Communication Ltd. (WIC) to Shaw Communications Inc. (Shaw) and Cathton
Holdings Ltd. (Cathton).
- Shaw and CanWest Global Communications Corp. (CanWest
Global) reached a tentative deal to split up the assets of WIC.
1999
- CanWest Global, Corus Entertainment Inc. (Corus), Shaw
& Cathton jointly entered into definitive agreements which, upon completion, would
result in the division of WIC’s various broadcasting undertakings and unregulated
assets between CanWest Global, Corus and Shaw.
- A copy of the Master Agreement and the Cathton Agreement
was submitted to the CRTC. The Master Agreement contemplates the distribution of
WIC’s various undertakings among CanWest Global, Corus and Shaw in the following
manner:
CanWest GlobalObtain all of WIC’s interests in conventional
television broadcasting undertakings;
Acquire one of WIC’s video-on-demand undertakings;
Acquire WIC’s 70% voting interest in CF Television,
licensee of CFCF Montreal;
Acquire WIC’s interest in CTEQ Television Inc.,
licensee of CJNT Montreal;
Acquire WIC’s participation in the specialty service
ROBTv, a general partnership;.
Acquire certain of WIC’s interest in unregulated
assets.
Corus
- Acquire WIC Radio Ltd.’s radio stations;
- Acquire control of WIC Premium Television Ltd., licensee of
pay and specialty services. This includes WIC’s interest in Home Theatre (100%),
MovieMax (100%), SuperChannel (100%), a PPV undertaking (100%) and WIC’s (50%)
interest in The Channel Inc., licensee of the Family Channel and a shareholder in TELETOON
(40%), licensee of TELETOON;
- Obtain control of a VOD licence through the acquisition of
WIC’s interest in Electronic Digital Delivery Inc.;
- Acquire certain of Corus’ interest in unregulated
assets.
Shaw
- Acquire WIC’s interest in its satellite
holdings, Cancom which would provide Shaw with more than 50% of the voting interest of
Cancom.
The CRTC’s decisions
At the Vancouver public hearing in April of this year, the
CRTC considered applications proposing the dispersal among CanWest Global, Corus and Shaw.
The hearing marked the final stages of a complex transaction that had its beginnings two
years earlier. Details concerning the events leading up to the 25 April hearing are
set out in full in Notice of Public Hearing CRTC 2000-1.
On 30 June 2000, the Commission approved the application
by Shaw to acquire a 21.18% voting interest in Canadian Satellite Communications Inc.
(Cancom). The completion of this transaction results in the ownership by Shaw of more than
50% the voting interest in Cancom, representing effective control of the businesses
carried on by Cancom and its subsidiaries.
In today’s decisions, the CRTC approved:
- The sale of WIC’s interest in WIC Premium Corporation,
conditional upon the subsequent divestiture by Corus of the indirect 50% voting interest
it is acquiring in The Family Channel Inc.
Applications for the acquisition by CanWest
Global, through its wholly-owned subsidiary CW Shareholdings Inc., of WIC's in various
conventional television stations and in certain other broadcasting undertakings.1
The attached tables illustrate the Commission’s
determination with respect to the applications by CanWest Global and Corus as well as
their current interests in various broadcasting undertakings.
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1 Conditional upon subsequent diverstiture by CanWest Global
of its television station in Vancouver (CKVU-TV). The Commission denied the acquisition of
WIC's 70% voting interest in CF Television. CanWest withdrew its application to acquire
WIC's interest in CTEQ.
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