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Shaw buys controlling stake in CanWest’s TV business

Telecom giant scoops up 80 per cent voting interest


 

Cable and telecom giant Shaw Communications has agreed to take a 20 percent equity stake and 80 percent voting interest in CanWest’s fledgling television business, which includes the Global TV network as well as its specialty channels. Shaw has also indicated it is prepared to take on additional equity in CanWest’s television operations in exchange for cash payments to shareholders. The deal has no impact on CanWest’s newspaper business, which was put into creditor protection in early January, but it allows the debt-laden company to satisfy creditor demands for new equity investment. Though it was on announced on Friday, the agreement still requires the approval of creditors, the court, and Canada’s broadcast regulators.

Reuters


 
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