CanWest reduces its Ten stake

SYDNEY — Izzy Asper’s CanWest Global Communications has agreed to sell a large chunk of its 76% interest in Oz’s Network Ten, after intense pressure from federal regulators. CanWest will sell $219 million-$365 million worth of its stake.

Late last week, the Canadian company, along with locally controlled Ten regional affiliate Telecasters North Queensland (TNQ), unveiled a complex pact. Under the plan, TNQ will acquire 18.7% of CanWest’s 76% equity in Ten — which has been ruled in breach of rules forbidding foreigners controlling TV webs or more than 15% of voting stock.

If approved by the Australian Broadcasting Authority and the Foreign Investment Review Board, the deal will bring the Canadian company back down to the 57.5% economic interest and 15% voting stake it held before a string of complex share deals in 1996 gave CanWest interests a 76% economic holding and 52% voting stake.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More TV News from Variety