CALGARY – Vista Radio is moving east with a bid to buy Haliburton Broadcasting and its 24-station Ontario radio network, which includes the Northern Ontario Moose FM brand, for $32.34 million.
The deal is pending regulatory approval and is scheduled to be reviewed by the CRTC at its September 10 hearing in Montreal. This marks the first eastern expansion for the private broadcaster which currently holds 38 broadcast licenses serving more than 50 communities across British Columbia, Alberta and the Northwest Territories.
Vista Radio president and CEO Margot Micallef told Cartt.ca on Wednesday that the eight year old company, which she helped found, has always aspired to be a national broadcaster, albeit one that serves small and mid-sized markets. “This (acquisition) is a perfect fit for us”, she said, noting both radio groups’ commitment to local content and community involvement. “We have no plans to change anything at all, especially to tinker with the very well accepted and highly regarded Moose brand. It’s possible that as we move into the operations that things could change, but for the present time, we love everything we see.”
Micallef said that Vista was able to make the move into Ontario thanks to financial backing from investment company Westerkirk Capital Inc., which in April announced plans to buy shares that weren’t already owned by Vista's management from Vista Radio parent Vista Broadcast Group. The CRTC approved that transaction earlier this month.
According to Vista’s application to the CRTC that was made public this week, the acquisition of Haliburton Broadcasting is valued at $32.34 million. Vista has proposed tangible benefits worth $1.94 million for the stations over a seven-year period, representing 6% of the value of the transaction, plus committed to assume the unfulfilled tangible benefits resulting from previous transactions.
With stations throughout Ontario’s cottage country, including as far north as Timmins and as far south as Niagara, Haliburton Broadcasting was almost bought by Newcap early in 2009. As Cartt.ca reported, that deal fell through due in large part to deteriorating credit markets.
Micallef confirmed that Vista is currently in discussions with other Canadian radio operators and will continue to grow the business through acquisitions and new licence applications. Some of those new stations could include any offered for sale by Bell Media as it acquires Astral Media.
“The major market stations that Bell will be required to sell do not appeal to us at this time as we still remain focussed on small to mid-markets”, she added. “We do hope that Bell will see its way to selling some of its smaller market stations and if they do, then we would definitely be first with our hands up for them.”
