CALGARY – The Ontario Superior Court of Justice has approved Shaw’s takeover bid of Canwest, despite a last minute rival bid lead by investment fund Catalyst Capital, the Asper family and two former Rogers execs.
The Calgary-based cable company has entered into agreements with Canwest and certain 8% senior subordinated noteholders for a minimum commitment to buy $95 million worth of Class A voting shares in a restructured Canwest, which represents 20% equity and an 80% voting interest.
Shaw’s initial equity interest will exceed 20% depending on the number of Canwest creditors that elect cash rather than shares in restructured Canwest, the press release detailed, however, Shaw’s 80% voting interest will give it effective control regardless of its final equity interest.
The investment still requires approval by Canwest creditors, the CRTC and U.S. investment bank Goldman Sachs which is a partner with Canwest on some of its specialty TV channels. Creditor approval is required by April 15, 2010 and the recapitalization must be completed by August 11, 2010, according to Shaw’s release.
