Shaw Communications Inc. Significantly Enhances Its Wireless Network Capabilities
As previously announced earlier today, Shaw Communications Inc. has entered into a series of transactions that enhance the Company's long-term growth prospects.
The transactions announced today include a share purchase agreement with GI Partners portfolio company Peak 10 Holding Corporation to sell 100% of Shaw's wholly-owned subsidiary, ViaWest, Inc. for approximately C$2.3 billion.
Concurrently, Shaw also announced that it has entered into a definitive agreement with Quebecor Media Inc. to acquire 700 MHz and 2500 MHz wireless spectrum licences for $430 million. The spectrum licences being acquired comprise the 10 MHz licences of 700 MHz spectrum in each of British Columbia, Alberta, and Southern Ontario, as well as the 20 MHz licences of 2500 MHz spectrum in each of Vancouver, Edmonton, Calgary, and Toronto.
"Considering the acquisition of WIND (now Freedom Mobile) in 2016, we now have more synergistic investment opportunities as a leading enhanced connectivity provider within our Canadian footprint," Mr. Shaw said. "We believe this incremental investment in our wireless business, particularly with the addition of the 700 MHz spectrum, will materially improve our long-term wireless customer experience, and will further enable our ability to offer converged network solutions to our customers."
Shaw expects to realize net cash proceeds from the ViaWest Transaction of approximately C$900 million after the repayment of ViaWest-related debt and estimated ViaWest Transaction expenses and taxes.
The Spectrum Transaction is subject to customary closing conditions and all necessary regulatory approvals from the Ministry of Innovation, Science and Economic Development Canada ("ISED") and under the Competition Act. The Spectrum Transaction has received all required internal approvals at Shaw and Quebecor and is not subject to approval by the shareholders of Shaw or further approval by the shareholders of Quebecor.
The Spectrum Transaction will be funded using a combination of cash proceeds from the ViaWest Transaction, cash on hand and/or Shaw's existing credit facility, and is expected to close in the Summer of 2017.
In addition to the spectrum acquisition cost, capital expenditures associated with the deployment of the acquired spectrum are estimated to be approximately $350 million. The Company expects the majority of the capital related to the network build to be incurred during fiscal 2018, which reinforces Shaw's commitment to the wireless space, and improves our long-term wireless growth prospects.
Shaw will discuss the ViaWest Transaction and the Spectrum Transaction in conjunction with our third quarter fiscal 2017 results on the previously-scheduled conference call for Wednesday June 28, 2017.
Shaw Communications Inc. Announces Acquisition of 700 MHz and 2500 MHz Wireless Spectrum Licences from Quebecor Media Inc.
Shaw Communications Inc. Announces Sale of ViaWest to Peak 10 for Approximately C$2.3 Billion
Mark Goldberg tweeted
Videotron paid a total of $420M for its 700MHz and 2500MHz spectrum.
Today's sale to Shaw gives it a $10M profit, and it keeps QC for free