Bell takes control of CFCF-TV and ROBTv for $90 million cash
Toronto - Bell Globemedia's CTV Inc. announced today that it has signed a definitive agreement with Global Communications Limited and Mr. L.R. ("Bud") Sherman, trustee, to purchase Global's 70 per cent interest in CF Television Inc., the English-language television station in Montreal, Quebec for a cash purchase price of approximately $90 million.
The transaction values CFCF at $141.5 million, including assumed debt of approximately $20 million. Closing of the transaction is subject to certain conditions, including CRTC approval and certain rights in favour of an affiliate of La Caisse de Depots et de Placements du Québec (which owns the remaining 30 per cent interest in CFCF) under an existing shareholders agreement.
CFCF has been a valued long-standing CTV affiliate. As a CTV owned-and-operated tation, viewers in Québec will now enjoy the full CTV network service.
In a separate transaction, Thomson Canada Limited (TCL), a holding company of The Thomson Corporation, acquired CanWest Global Communications Corp.'s 50 per cent interest in ROBTv for approximately $30 million. Thomson Canada Limited will transfer ownership of ROBTv to Bell Globemedia Inc., as per a previous agreement.
Pending customary regulatory approvals, Bell Globemedia will own 100 per cent of ROBTv.
The CFCF transaction was finalized between Ivan Fecan, president and CEO of Bell Globemedia and CEO of CTV Inc., and Leonard Asper, president and CEO of CanWest Global.
"Leonard and I had positive discussions late last night which cleared the way for the trustees and the lawyers to successfully negotiate and conclude the deal today," said Fecan.
"The CFCF purchase strengthens our voice in Quebec. ROBTv will give us the business platform we have been seeking," Fecan added.
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