Shaw Buys Controlling Interest In CanWest Global
February 12, 2010 at 10:06 AM (PT)
SHAW COMMUNICATIONS is buying a controlling equity interest in bankrupt CANWEST GLOBAL COMMUNICATIONS. SHAW, which shares common ownership with Canadian radio and TV operator CORUS ENTERTAINMENT but is independently operated, will buy a minimum 20% equity interest and 80% voting interest in CANWEST, the owner of the GLOBAL TV network and several newspapers and cable networks.
"We are very pleased with the firm investment commitment from SHAW", said CANWEST Board of Directors Chairman DEREK BURNEY. "While there is much work still to be done, SHAW's commitment represents an important step towards a successful financial restructuring of CANWEST and is supported by the Company and the members of the Ad Hoc Committee.
"We look forward to benefitting from SHAW's participation in a reinvigorated CANWEST, as it is a strong business partner with a proven commitment to the Canadian television broadcasting industry. This significant investment in conventional television should be seen as a big vote of confidence in the industry and its future."
CORUS was spun off as an independent company from SHAW in 1999. The companies operate separately but are both controlled by founder J.R. SHAW and the SHAW family.