TORONTO — Cabler Shaw Communications will take control of Winnipeg’s Moffat Communications in a deal worth C$1.2 billion ($780 million).
Pending regulatory approval, Calgary-based Shaw is offering to buy shares in Moffat, a cabler in Canada and the U.S. for more than 50 years, for $15 each or exchange them for 1.051 Shaw shares.
Moffat prexy Randall Moffat has agreed to tender the 52% of shares he owns through his holding company and join Shaw’s board of directors. Shaw already holds 15% of Moffat.
“Moffat’s cable assets represent an excellent strategic fit for Shaw,” said Shaw prexy and CEO Jim Shaw. “The addition of Moffat’s cable operations in Edmonton and Winnipeg will complete our coverage of these great cities and expand our presence in Alberta and Manitoba.”
The deal centers three-quarters of Shaw’s cable and Internet customers in five cities — Vancouver, Calgary, Edmonton, Winnipeg and Victoria.