TORONTO – After passing the Competition Bureau and CRTC tests, Bell Globemedia announced today that it has completed the closing of its new ownership structure.
The CRTC approved the new ownership structure on July 21st and on August 18th the Competition Bureau rubber-stamped it. The decisions clear the way for BGM to implement the changes to its ownership structure announced on December 2nd of last year, including the investment by each of Ontario Teachers’ Pension Plan (OTPP) and Torstar Corporation, and the increased investment of Woodbridge Corp.
All three purchased stakes from Bell Canada Enterprises for a total of $685 million. BCE will retain 20% of BGM, down from 68.5% and, as part of the transaction, BCE retains certain rights and has entered into a commercial agreement with BGM to have access to existing and future content.
But BCE doesn’t just gain the purchase price: "As a result of the sale of shares… BCE has received proceeds of approximately $685 million from its partners in BGM. BCE also received $607 million as a return of capital stemming from the recapitalization of BGM in January 2006, bringing the total cash proceeds received by BCE from this transaction to approximately $1.3 billion," says the press release.
Of course, the rumour mill is already spinning wildly on how BGM might go public in the not-too-distant-future.
The company also announced the new board of directors of the media company. They are:
* Geoffrey Beattie, president, Woodbridge and chairman of the board
* Ivan Fecan, president and CEO, BGM and CEO, CTV Inc.
* David W. Binet, executive vice-president, Woodbridge
* Ronald Gordon Close, president, Bell New Ventures, BCE
* Gordon S. Lackenbauer, corporate director (he is also chairman of forestry company Tembec and former deputy chairman of BMO Nesbitt Burns)
* James Leech, senior vice-president, Teachers’ Private Capital
* Robert Prichard, CEO, Torstar
* Pamela Wallin, corporate director (as most may know, she is also a former broadcaster and is the Canadian Consul General in New York City)
BGM owns CTV Inc. and The Globe and Mail. CTV operates 21 conventional television stations across Canada and has interests in 17 specialty channels. Other BGM investments include a 15% interest in Maple Leaf Sports and Entertainment, which owns the Toronto Maple Leafs, Toronto Raptors and the Air Canada Centre; and a 50% interest in Dome Productions.
