Stingray Digital Group Buys Newcap

Deal

NEWFOUNDLAND CAPITAL CORP. -- more commonly known as NEWCAP RADIO -- is being sold to multiplatform music provider STINGRAY DIGITAL GROUP for C$508 million, including assumption of C$112 million of debt.  The buyer, upon shareholder and CRTC approval, will acquire all NEWCAP Class A Subordinate Voting Shares and Class B Common Shares at C$14.75 per share paid in a combination of cash and STINGRAY shares, a premium of about 16% over NEWCAP's volume-weighted average closing share price on the TSX for the last 20 trading days.

“Today marks the start of an exciting chapter for NCC,” said NEWCAP Chairman/President/CEO ROB STEELE, who will step down upon closing, to be replaced as head of the STINGRAY radio division by NEWCAP COO IAN S. LURIE. “By joining forces with STINGRAY, we are of the view that the synergies will allow our business to move towards even greater success. Together, we have begun to build a solid foundation for CANADA’s next great media group. We expect that our combined company will stand out in today’s fiercely competitive market for its world-class talent and complementary service offering. On behalf of NCC’s management and Board of Directors, I am thrilled NCC is joining the STINGRAY family.”

“This transaction with NCC comes after months of careful review” said STINGRAY President/Co-Founder/CEO ERIC BOYKO. “It represents a considerable milestone for Stingray -- positioning us as a major player in the Canadian media landscape -- and is a valuable opportunity for our stakeholders. We have found in NCC an established and trusted partner with a proven track record of delivering results in niche markets across the country. I am excited to expand STINGRAY’s operations into radio broadcasting and bring on board some of CANADA’s most popular on-air talent and an experienced sales force, which will help us grow our revenue streams. I look forward to welcoming the NCC team to the STINGRAY family and collaborating with the current management in place.”

NEWCAP owns 94 stations across CANADA, including clusters in TORONTO, VANCOUVER, CALGARY, EDMONTON, OTTAWA, and HALIFAX, among many others.  It also owns GLOBAL affiliate CKSA-TV and CTV affiliate CITL-TV/LLOYDMINSTER, AB-SK.

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