TORONTO – CanWest Global said today it is exercising its right to increase its equity in the joint company (with Goldman Sachs) that is acquiring Alliance Atlantis Communications Inc. ("Alliance Atlantis"), to $200 million.
The proposed purchase was announced last month and still has to get past the regulator.
CanWest’s initial commitment to the venture was $132 million and it has the option to increase this commitment within 45 days of the original agreement. CanWest’s equity will be directed to the subsidiary acquiring Alliance Atlantis’s broadcasting division and will result in CanWest holding an economic position therein of approximately 29%, subject to final closing adjustments, with the balance being held by GSCP.
"This is consistent with our ongoing commitment to enhance our existing television business by expanding in the specialty television sector" said Leonard Asper, president and CEO of CanWest, in a release.
The acquisition of Alliance Atlantis is being carried out by way of a Plan of Arrangement. The Arrangement must be approved by the Shareholders of Alliance Atlantis. The Arrangement is also subject to court approval, as well as certain other customary conditions including the receipt of regulatory approvals.
