Shaw Communications Inc. (SJR, SJR_B.TO) announced Monday that it has entered into agreements with Rogers Communications Inc. (RCI,RCI.TO,RCI_A.TO, RCI_B.TO) to sell to Rogers its shares in its Hamilton-based cable operations, Mountain Cablevision Limited, grant to Rogers an option to acquire Shaw's spectrum licenses for advanced wireless service in British Columbia, Alberta, Saskatchewan, Manitoba and Northern Ontario or the "Spectrum Licenses" and to purchase from Rogers its 33.3% partnership interest in the TVtropolis General Partnership.
The consideration payable by Rogers to Shaw for Mountain Cable, the Spectrum Licenses and other transactions, net of TVtropolis, is approximately $700 million of which $400 million represents the purchase price for the Mountain Cable transaction, and (b) $50 million represents the purchase price of the option granted by Shaw to Rogers to acquire the Spectrum Licenses.
Shaw said it is paying $59 million for the remaining interest in TVtropolis and this will be paid today as a deposit. 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 Spectrum Option will be exercisable from the date on which Industry Canada and Competition Bureau approvals permit such exercise and the transfer of the Spectrum Licenses until expiry in March 2015, subject to extension in certain circumstances.
For comments and feedback: editorial@rttnews.com