CanWest Global Communications Corp. has entered into a definitive agreement to acquire TV broadcaster/distributor Alliance Atlantis Communications Inc. Together with GS Capital Partners, a private equity affiliate of Goldman, Sachs & Co., CanWest has formed a new acquisitions company that will pay approximately $1.95 billion to take control of all of Alliance’s outstanding Class A voting and Class B non-voting shares. In addition to boasting a lineup of 13 specialty television channels, Alliance Atlantis distributes such animated series as Dragon Booster, Connie the Cow, Henry’s World, Peep and the Big Wide World and Lunar Jim (which it co-produces with the Halifax Film Co.).
‘Today’s transaction is consistent with CanWest’s strategy to enhance its existing television business and expand its presence in the fast growing specialty television sector,” Canwest president and CEO Leonard Asper said yesterday. “The combined expertise of CanWest and Alliance Atlantis will enable us to produce even better Canadian content, promote it more effectively and provide greater access to more viewers across more platforms.’
Alliance’s Class A voting and Class B non-voting shareholders will meet to vote on the arrangement this spring, though shareholders representing approximately 80% of the Class A voting shares have already agreed to vote in favor of the acquisition. The Arrangement is also subject to court approval and other customary conditions, including the receipt of regulatory approvals.
Under the agreement, Alliance Atlantis’ specialty television business and CanWest’s Canadian television business will be combined and managed by CanWest. The formal combination of the broadcast operations will occur sometime in 2011.
Leave a Reply