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Shaw sells option on spectrum holdings to Rogers

2013-01-15 09:00:00| Telecompaper Headlines

(Telecompaper) Canadian operators Rogers Communications and Shaw Communications have agreed to an asset swap. Rogers will acquire Shaw's Hamilton-based cable operations Mountain Cablevision and an option to acquire Shaw's AWS spectrum licences in British Columbia, Alberta, Saskatchewan, Manitoba and Northern Ontario. Shaw will in turn buy the third of shares it does not yet own in the TV channel TVtropolis from Rogers for CAD 59 million. The net price for Rogers is approximately CAD 700 million, including an initial CAD 250 million deposit for the cable operations in southern Ontario plus CAD 400 million cash for the remainder and CAD 50 million for the spectrum option. The final option exercise price will be settled in negotiations over the next several months. If regulatory approval is secured, the option would likely be exercised in late 2014, Rogers said. Shaw and Rogers also agreed a services provision deal in Western Canada and continued carriage of TVtropolis on Rogers' network. Shaw said it will use the proceeds from the sale for capital investment in its network.

Tags: option spectrum holdings rogers

Category:Telecommunications

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