Shaw Communications has arranged to buy a controlling stake in Canwest Global Communications Corp. Shaw would own at least 20% of Canwest’s equity and 80% of its voting stock after the deal.
Canwest currently owns the Global Television Network, a large newspaper chain and several specialty cable channels.
Canwest also owes billions of dollars to creditors and has been operating under court supervision since last year. The company says the proposed deal with Shaw has the support of key creditors.
Canwest Chairman Derek Burney is quoted as saying that Canwest is “very pleased” with the firm
commitment from Shaw and support from the group known as the ad hoc committee of creditors.
The amount that Shaw would pay wasn’t disclosed.
The deal with Shaw, a publicly traded company controlled by the founding Shaw family, would manage a restructured Canwest as a stand-alone business with its own board of directors.
If the deal goes through it would give Shaw 11 local TV stations across the country, and ownership of a group of specialty cable channels, including History Television, Showcase, MovieTime and HGTV, some of which were acquired from Alliance Atlantis in 2007.
Canwest shares, which would be delisted after the takeover, closed Thursday at six cents on the TSX Venture Exchange.
Shaw owns and operates Shaw Cable and StarChoice satellite TV.