Shareholders Approve SiriusXM Canada Plan To Go Private
August 30, 2016 at 11:55 AM (PT)
SIRIUSXM CANADA's plan to take the company private has been approved by a special majority vote of shareholders, including a majority of disinterested shareholders. 89.14% of the 121,792,144 votes cast by Company Voting Shareholders, and 65.91% of the 38,781,229 votes cast by disinterested Company Voting Shareholders, were in favor of the plan.
Under the C$275 million recapitalization scheme, 2517835 ONTARIO INC. will buy all shares of the company at C$4.50 cash or shares. The CBC is selling its shares in the operation, while SIRIUSXM CANADA will retain voting control, and SLAIGHT COMMUNICATIONS and OBELYSK MEDIA will together own 67% of the voting shares of SIRIUS XM CANADA and 30% of the recapitalized business. The U.S. SIRIUSXM will own 70% of the economic interest and 33% of the votes of the new entity.
"The strong voting support in favour of the transaction clearly demonstrates that our shareholders recognize that it is an opportunity for them to best maximize the value of their current investment, be it by taking advantage of the premium cash offer, remaining invested in the North American market opportunity, or a combination of both," said President/CEO MARK REDMOND. "With these shareholder approvals in place, we will continue to work to secure the necessary regulatory approvals to close the transaction in a timely manner."