Bell Media sells five radio stations to Newcap

The $112 million deal comes as the media group has to divest properties to comply with the CRTC's common ownership policy.
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Following the Astral Media takeover, Bell Media has sold five radio stations in Toronto and Vancouver to the Newfoundland Capital Corporation as part of a $112 million cash and stock deal.

Newcap has picked up the radio broadcasting licenses for CHBM-FM (Boom 97.3) and CFXJ-FM (93.5 Flow) in Toronto, and CKZZ-FM (Virgin Radio 95.3), CHHR-FM (Shore 104.3 FM) and CISL-AM (AM 650) in Vancouver.

Bell Media is selling the radio stations to comply with CRTC rules that limit the number of stations a company can own in a single market.

The deal is subject to CRTC approval.

Newcap will finance the transaction using an existing $90 million revolving credit facility, and tapping a non-revolving credit facility of $90 million.

“Parting with valued and dynamic assets is never easy,” said Jacques Parisien, president of national specialty and pay TV, radio, and out-of-home at Bell Media, in a statement.

“However, Newcap’s acquisition of CHBM-FM, CFXJ-FM, CKZZ-FM, CHHR-FM, and CISL-AM is tremendous news for the stations’ employees, listeners, and clients, as well as the Canadian radio industry,” he added.