Newfoundland Capital Corporation Limited announced today that its wholly-owned subsidiary, Newcap Inc., is exploring the possible sale of its western broadcasting assets which are located primarily in Alberta. The assets consist of 32 radio stations, 6 repeater licences and 2 TV stations.
The Company has a history of buying and selling businesses as a means to create shareholder value. If the Company is able to reach an agreement at a value the Company considers appropriate, the use of proceeds will be determined by the Board of Directors in the best interests of the Company and its shareholders. This may include reinvesting in geographic areas closer to its base in Atlantic Canada, reducing debt or returning capital to its shareholders.
“These broadcasting assets have a strong track record of earnings,” commented Rob Steele, President and Chief Executive Officer. “This is a great opportunity for potential buyers as this is the first time in many years that a cohesive group of broadcasting assets has been for sale in one concentrated area in one of Canada’s most prosperous provinces.”
Investors should be cautioned that there is no agreement in place to sell these assets and there is no certainty that any transaction will result from the current process.