Coin raised in part via the issuing of additional equity
Canuck broadcaster Bell Globemedia has completed the financing for the acquisition of rival broadcaster Chum, the company announced Thursday.
The financing was raised in part via the issuing of additional equity in Bell Globemedia.
As part of the financing agreement, telecom company BCE (Bell Canada Enterprises) has reduced its stake in Bell Globemedia from 20% to 15%.
At the same time, the Ontario Teachers Pension Plan increased its stake in Bell Globemedia to 25% from 20%. The other owners are the Woodbridge Company (at 40%) and Torstar Corp. (at 20%).
In July, Bell Globemedia inked a deal to acquire Toronto-based Chum for C$1.7 billion ($1.5 billion), giving Bell Globemedia control of two of Canada’s three main TV networks.
Bell Globemedia already owned CTV and a slew of specialty channels, and, with the purchase of Chum, it adds 12 local television stations and 21 specialty webs, including MuchMusic and Bravo (Canada).
The deal is still pending regulatory approval from the Canadian Radio-television & Telecommunications Commission (CRTC) and the Competition Bureau.