Shaw Communications Inc. announced Wednesday that the Ontario Superior Court has approved its plan to acquire Canwest Global Communications Corp.'s broadcasting assets for $2 billion. The court approval means Shaw is one step further toward completing its purchase of 100 per cent of Canwest's television assets. The CRTC has yet to give its thumbs up on the deal, and has announced a public hearing for Sept. 20. At issue at the hearing will be Shaw's "tangible benefits" proposal, a regulatory mechanism that requires companies to spend a portion of a broadcasting transaction on public benefits such as funding for producers and performers. The Competition Bureau will also have a say on the transaction. "This is another important step forward with respect to the [Canwest companies] emerging from the Companies' Creditors Arrangement Act process and we look forward to closing the transaction once all necessary regulatory reviews have been concluded, including approvals from the Canadian Radio-television and Telecommunications Commission and the Competition Bureau," Jim Shaw, CEO and vice-chair of Shaw, said in a release. Canwest entered creditor protection last October, with $4 billion in debt. "The CRTC has announced a public hearing, on September 20, to consider Shaw's application to assume control of Restructured Canwest and once approval is received we will be in a position to close the transaction and begin focusing on the operations and integration of Restructured Canwest," Shaw added.
Source: The Wire Report, 07/28/2010