TORONTO – In a note to clients, BMO Nesbitt Burns media and cable analyst Tim Casey notes the Shaw Communications purchase price of Mountain Cablevision may be as high as $300 million (a whopping $7,300 per sub).While saying the impact of the purchase is “slightly negative” for Shaw, Casey notes that industry contacts “have speculated a price in the $300mm range, implying roughly 12x EBITDA,” he wrote.“The transaction is a surprise given Shaw’s Ontario assets are in Sault Ste. Marie, Kenora and Thunder Bay. We expect operating synergies will be limited.“Given Shaw’s industry-leading track record regarding capital allocation, we are...
