TORONTO, June 11 /CNW/ - Rogers Media and CTVglobemedia Inc. ("CTVgm")
today announced an agreement under which Rogers Broadcasting, a Rogers Media
subsidiary, would acquire five Citytv conventional television stations from
CTVglobemedia Inc. These assets are currently under the control of Mr. John D.
McKellar, C.M., Q.C., Trustee under a Voting Trust Agreement in respect of
CHUM Limited. The transaction is subject to Canadian Radio-television and
Telecommunications Commission ("CRTC") and Competition Bureau approval. This
transaction is also subject to the satisfaction of the other conditions of
approval for CTVglobemedia's acquisition of effective control of CHUM Limited
as per the CRTC's June 8th, 2007 decision. CHUM Limited and Mr. John McKellar
are also parties to this agreement.
This agreement replaces a previously announced agreement pursuant to
which CTVglobemedia Inc. had agreed to sell the A-Channel stations and certain
specialty channels to Rogers Media.
Citytv Toronto (CITY-TV), Citytv Winnipeg (CHMI-TV), Citytv Edmonton
(CKEM-TV), Citytv Calgary (CKAL-TV) and Citytv Vancouver (CKVU-TV) are local,
urban oriented stations known for their ties to the communities they serve.
"The acquisition of the Citytv stations will significantly expand our
television operations and solidify our position as an important participant in
the Canadian television industry," said Rael Merson, President, Rogers
Broadcasting. "It gives Rogers an instant and significant television presence
in the largest markets in the country and is a natural complement to our
existing television broadcasting and specialty assets. The combination of our
existing television properties with the Citytv stations gives us a formidable
national television platform that will continue our proud tradition of service
to local communities and our desire to contribute to the Canadian broadcasting
"Rogers came in with a very strong offer on a pre-emptive basis, which
will see the Citytv stations in a fine home in a timely manner. This outcome
is good for both the businesses and the stations' employees," said Ivan Fecan,
CTVglobemedia Inc. President and Chief Executive Officer and CEO of CTV Inc.
"We know Rogers to be skilled operators of television assets and believe they
will be good stewards of these important urban brands."
The all cash transaction is valued at approximately $375 million and is
expected to close late in 2007.
TD Securities advised CTVgm on this transaction.
About the Companies:
Rogers Media Inc., a division of Rogers Communications Inc., (TSX: RCI;
NYSE: RG) operates Rogers Broadcasting and Rogers Publishing. Rogers
Broadcasting has 51 AM and FM radio stations across Canada. Television
properties include multicultural television broadcaster Rogers OMNI
Television, which is a free over-the-air system consisting of four regional
broadcasters; The Shopping Channel, a televised and electronic shopping
service; Rogers Sportsnet, Canada's live event and high-definition leader, and
the management of two digital television services. Rogers Publishing produces
many well-known consumer magazines such as Maclean's, Chatelaine, Flare,
L'actualité and Canadian Business, and is the leading publisher of a number of
industry, medical and financial publications. All media properties are
integrated with their own popular web sites. Rogers Media also owns The
Toronto Blue Jays Baseball Club and Rogers Centre, a year-round sports and
Rogers Communications Inc. (TSX: RCI; NYSE: RG) is a diversified Canadian
communications and media company engaged in three primary lines of business.
Rogers Wireless is Canada's largest wireless voice and data communications
services provider and the country's only carrier operating on the world
standard GSM technology platform. Rogers Cable and Telecom is Canada's largest
cable television provider offering cable television, high-speed Internet
access, residential telephony services, and video retailing, while its Rogers
Business Solutions division is a national provider of voice communications
services, data networking, and broadband Internet connectivity to small,
medium and large businesses. Rogers Media is Canada's premier collection of
category leading media assets with businesses in radio and television
broadcasting, televised shopping, publishing and sports entertainment. For
further information about the Rogers group of companies, please visit
CTVglobemedia Inc. is one of Canada's premier multi-media companies which
owns CTV Inc. and The Globe and Mail. CTV Inc. operates 21 conventional
television stations across Canada and has interests in 16 specialty channels.
Other CTVglobemedia investments include an interest in Maple Leaf Sports and
Entertainment, which owns the Toronto Maple Leafs, Toronto Raptors and the Air
Canada Centre and an interest in Dome Productions, a North American leader in
the provision of mobile high definition production facilities.
Caution Regarding Forward-Looking Statements:
This release includes forward-looking statements and assumptions
concerning the future performance of our business, its operations and its
financial performance and condition. These forward-looking statements include,
but are not limited to, statements with respect to our objectives and
strategies to achieve those objectives, as well as statements with respect to
our beliefs, plans, expectations, anticipations, estimates or intentions.
Statements containing expressions such as "could", "expect", "may",
"anticipate", "assume", "believe", "intend", "estimate", "plan", "guidance",
and similar expressions generally constitute forward-looking statements. Such
forward-looking statements are based on current expectations and various
factors and assumptions applied which we believe to be reasonable at the time.
We caution that all forward-looking information is inherently uncertain and
that actual results may differ materially from the assumptions, estimates or
expectations reflected in the forward-looking information. Accordingly, we
warn investors to exercise caution when considering any such forward-looking
information herein and to not place undue reliance on such statements and
assumptions. We are under no obligation (and we expressly disclaim any such
obligation) to update or alter any forward-looking statements or assumptions
whether as a result of new information, future events or otherwise, except as
required by law.