Despite strong opposition from an activist investor, the majority of shareholders in Canada’s Corus Entertainment have voted in favour of the company’s C$2.65bn (US$1.86bn) acquisition of telco Shaw Communications’ broadcasting unit Shaw Media. Shaw is using proceeds from the sale to fund its recently-completed purchase of Wind Mobile.
Despite strong opposition from an activist investor, the majority of shareholders in Canada’s Corus Entertainment (TSX:CJR.B) have voted in favour of the company’s C$2.65bn (US$1.86bn) acquisition of telco Shaw Communications’ (TSX:SJR.B) broadcasting unit Shaw Media.
Corus said in a statement that 78.54% of Class B shareholders voted for the deal, agreed on 13 January. Class A shareholders were unanimously in favour of it. The deal still needs the approval of the Canadian Radio-television and Telecommunications Commission before it can close, which Corus has said it hopes will happen by 31 May.
Private equity firm Catalyst Capital Group, which has about 0.4% of Corus shares, had argued that Corus was overpaying for Shaw Media as it was “created by the Shaw family for the Shaw family”. The firm asked the Ontario Securities Commission to delay the vote, complaining that the financial disclosure provided in advance was inadequate, but this was rejected.
Catalyst managing director Gabriel de Alba was cited telling reporters after the special meeting that the sales process had lacked transparency and should have enabled other strategic bidders to take part.
Both Shaw and Corus are controlled by the Shaw family, with the deal designed to organise all of its media assets under the Corus brand.
Shaw Media consists of the Global Television Network and 19 speciality channels including HGTV Canada, Food Network Canada, History Television and Showcase.
Shaw intends to use the proceeds of the sale to finance its C$1.6bn (US$1.2bn) purchase of Wind Mobile, which closed this month. The acquisition of the country’s fourth largest mobile operator adds wireless to its DTH, fibre, cable and WiFi offerings.
Shaw had previously said it would draw on a bridge facility to fund the Wind Mobile purchase if it closed before the Shaw Media sale. In mid-February, Shaw priced a C$300m (US$216.84m) offering of senior notes due 2021, potentially to help fund its C$1.6bn (US$1.12bn) acquisition of Wind Mobile.
Shaw rejigs exec team
Following its acquisition of Wind, Shaw has made multiple changes to its executive team, with all members reporting directly to CEO Brad Shaw (pictured).
Jay Mehr has been appointed president of the enlarged company, responsible for overseeing operational and customer-facing areas of the business, including Shaw Consumer, Shaw Business, Wind and Supply Chain. In his almost 20 years with the company, he has held roles ranging from regional accountabilities to his most recent position as EVP and chief operating officer.
The executive team will also include Vito Culmone as EVP and chief financial officer, Peter Johnson as EVP and chief legal and regulatory officer and Trevor English as EVP and chief strategy and business development officer. Nancy Phillips will continue to lead IT subsidiary ViaWest’s operations in the US.
