OTTAWA (dpa-AFX) - Shaw Communications Inc. (SJR, SJR_B.TO) Monday announced an about $700 million asset-sale deal with Rogers Communications Inc.
As per the terms, Shaw will sell to Rogers its shares in its Hamilton-based cable operations, Mountain Cablevision Limited.
Shaw has also granted Rogers an option to acquire the company's spectrum licenses for advanced wireless service in British Columbia, Alberta, Saskatchewan, Manitoba and Northern Ontario, and to purchase from Rogers its 33.3 percent partnership interest in the TVtropolis General Partnership.
Shaw said that the $700 million consideration payable by Rogers is net of the TVtropolis transaction. Rogers will pay $400 million for the Mountain Cable transaction ($250 million of which is an up-front deposit to be received today), and $50 million represents the purchase price of the option for Rogers to acquire the Spectrum Licenses. Shaw is paying $59 million for the remaining interest in TVtropolis and this will be paid today as a deposit.
Shaw said the final option exercise price for the Spectrum Licenses will be settled in connection with the negotiation over the next several months of the provision of certain services, assets or rights by Shaw to Rogers.
The deals are not conditional on the closing of any of the other transactions and remain subject to customary conditions.
TD Securities Inc. acted as the financial advisor to Shaw in connection with the transactions and Davies Ward Phillips & Vineberg LLP provided legal advice.
Shaw closed Monday at $23.32, up 0.21%, on the NYSE.
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