OTTAWA – The CRTC has given the green light to Stingray Digital Group’s plan to buy Newfoundland Capital Corporation (NCC, or as it’s more commonly referred in the radio business, Newcap), for $506 million.
The deal, first announced in May, includes 101 radio licences (82 FM and 19 AM) across the country, as well as conventional television stations CITL-DT and CKSA-DT Lloydminster, and the rebroadcasting transmitter CKSA-TV-2 Bonnyville, AB.
The Commission said Tuesday that it has determined that the deal is in the public interest, saying that its approval of the proposed transaction “would allow the acquired stations to benefit from Stingray’s expertise in providing innovative, cross-media, premium musical content”. It also accepted the tangible benefits package proposed by Stingray, valued at $30.96 million, noting that that it would support the Canadian broadcasting industry as a whole, including initiatives that support the development of Canadian content.
Following the close of the transaction, which is expected to be approximately October 26, 2018, Newcap and its five wholly owned subsidiaries will continue to operate the broadcast undertakings under the same terms and conditions as those in effect under the current licences.
