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.