Just days after the crtc approved the notorious wic split deal that gave Shaw Communications an increased majority interest in Cancom, the cabler has announced that it intends to take the satellite company private by buying up all its remaining common shares, in exchange for Shaw stock.

‘With Shaw, Cancom and Star Choice (Cancom’s wholly owned subsidiary) can gain better access to capital and debt markets. They gain access to better rates of financing than they can on their own,’ says Peter Classon, senior vp, Shaw Communications.

Under the proposed deal, Cancom will also have the volume buying power to leverage with technology suppliers, adds Classon.

Shaw intends to offer 0.84 of a Shaw class B share for every Cancom share tendered.

If all the Cancom common shares are acquired, on a fully diluted basis, the value of the transaction will total approximately $675 million.

The offer will not be conditional on a minimum number of Cancom common shares being tendered and will be extended to holders of convertible securities.

There are currently 22 million Cancom shares held by the public. After gaining wic’s 21% of Cancom, Shaw owns 62% of its outstanding common shares.

An independent committee of the board of directors of Cancom, chaired by Colin Watson, has been appointed to consider the Shaw offer and to make recommendations to the board. The committee has retained Griffiths McBurney & Partners as financial advisors.

The process is expected to take up to seven weeks.

In early afternoon July 19, Cancom shares were trading on the tse at $28.50 with a 52-week high of $30.00 and low of $3.90. Shaw Class B voting shares were trading on the tse at $33.50, with a 52-week high of $45.50 and low of $19.25. *

– www.cancom.ca

– www.shaw.ca