Shaw moves to take control of Canwest
CALGARY – Shaw Communications Inc. has moved to take controlling interest in financially ruined Canwest.
Shaw announced it will acquire 20 per cent equity interest and 80 per cent voting interest – effectively total control of Canwest.
“Shaw’s initial equity interest will exceed 20% depending on the number of Canwest creditors that elect cash rather than shares in Restructured Canwest,” Shaw announced on Friday morning.
Canwest is under court ordered bankruptcy protection.
“We are excited about the Investment and gaining effective control of one of the premier broadcasters and owners of content in the Canadian broadcasting industry at a reasonable valuation,” said Jim Shaw, who is CEO of the Calgary company.
“We believe that Shaw’s Investment results in a number of benefits to the broadcasting system, including an ability to strengthen local programming, ensure the ongoing viability of the second largest private conventional television network in Canada, and sustain a dynamic and competitive television market” he said.
The financial terms will not be disclosed until the courts approve the deal.
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