Cancom issues common shares

Company to repay Star Choice Communications debts

TORONTO — Canadian Satellite Communications (Cancom) completed a deal Tuesday issuing 6.72 million common shares on the Toronto Stock Exchange at C$18.25 ($12.33) per share.

The proceeds from the issue, after expenses, are about $117.6 million. Cancom stated in a press release that about $18.25 million of that will be used to repay the debts of its direct-to-home (DTH) subsidiary Star Choice Communications to cabler Shaw Communications. The rest will be used to expand its DTH operations and for “general corporate purposes.”

As part of the deal, Shaw acquired 1.9 million of the Cancom shares issued, bringing its Cancom holdings to 8.8 million shares, or 35% of common shares outstanding. Should regulatory approvals come as planned for the division of Vancouver-based media company WIC Western Intl. Communications, Shaw also plans to take the 29% of Cancom shares that WIC holds, giving Shaw control of Cancom.

Filed Under:

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 Biz News from Variety