Astral and Corus swap Quebec radio stations

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2004-03-30

MONTREAL - Astral Media Inc. and Corus Entertainment Inc. announced this morning they intend to exchange a number of radio assets in the province of Québec.

The agreement will further solidify both companies' commitment to the Québec Radio Market and listeners will likely see a number of format changes once complete. The value of the transaction was not released, however, the market value which Astral placed on the stations it is swapping was in the $12 million range.

Under the terms of the agreement, Astral's seven AM stations (including the Radiomédia network it has been attempting to sell for some time so it certainly hopes this deal sticks) as well as CFOM-FM in Quebec City are to become part of Corus Entertainment's radio division. In exchange, five Corus-owned FM stations in Rimouski, Amqui, St. Jean-sur-Richelieu and Drummondville will become part of Astral Media Radio. The full list of exchanged stations is below. Closing of the transaction is subject to regulatory approvals, which are expected in the 2024 calendar year, said the joint press release.

"We are very pleased with this agreement," said Jacques Parisien, president of Astral Media Radio. "Not only do we feel confident that our AM assets and CFOM will be in good hands going forward, but we are also excited about the opportunity to open up new markets for our radio group. This proposed transaction enables Astral Media to reach other regions in the province of Québec with our existing Énergie, RADIO RockDétente and Boom networks. We have had a successful history of working with Corus Entertainment in our Television group, which has certainly helped to set the stage for this agreement and we feel it will be a win-win situation for all parties involved."

"This is a great strategic opportunity for Corus Entertainment," added Pierre Arcand, president of Corus Entertainment's radio operations in Québec. "This secures Corus' position as the leader in radio news and information programming in the province, and entry into the Quebec City market has been a goal of Corus Radio for some time. This transaction extends our reach and our commitment to Québec. We're confident that our five regional stations will continue to be strong performers under Astral's management and we look forward to welcoming the Radiomédia stations and CFOM to the Corus family."

Corus Entertainment new assets
CKAC AM (Montreal)
CHRC AM (Quebec City)
CFOM FM (Quebec City)
CJRC AM (Hull/Gatineau)
CKRS AM (Chicoutimi)
CHLN AM (Trois Rivières)
CHLT AM (Sherbrooke)
CKTS AM (repeater station, Sherbrooke)

Astral Media new assets
CJOI-FM (Rimouski)
CIKI-FM (Rimouski)
CFVM-FM (Amqui)
CFZZ-FM (St. Jean-sur-Richelieu)
CJDM-FM (Drummondville)