CALGARY – The Ontario Superior Court of Justice has approved the sale of CanWest’s TV assets to Shaw Communications.
However, the transaction remains subject to regulatory approvals from the CRTC and the Competition Bureau. Sources told Cartt.ca that the CRTC hearing on the deal has been tentatively scheduled for the week of September 20th.
Wednesday afternoon’s approval comes after a group of Canwest Global shareholders and the Asper family challenged the deal in court on Tuesday, calling the $2 billion sale “unfair”. The dissenting group will receive $11 million under a new version of the deal hammered out on Wednesday.
"This is an important milestone in the lengthy and difficult CCAA process that CanWest has endured over the last several months”, said Shaw president Peter Bissonnette, in a statement. “We are pleased that the Court has recognized Shaw’s participation in the restructuring process under the framework set out by the Board of Canwest, the Ad Hoc Committee and approved by the Court, and that we were able to finalize terms of the transaction with all constituent parties involved in the restructuring process. We look forward to completing all necessary steps and closing the transaction as soon as possible."
Creditors will meet on July 19 to vote on the deal. If it is approved, CanWest will appear in court again on July 28 to sanction the plan.
