MONTREAL – The Slaight Family has agreed to sell Standard Radio to Astral Media.
Astral announced that it has signed a letter of intent and has entered into exclusive negotiations to buy substantially all of the assets of the radio and TV broadcaster. A potential purchase price was not disclosed, however The National Post, which broke the story this morning, said Standard should fetch over $1.1 billion.
The assets under consideration include Standard Radio’s 52 radio stations in 29 markets across Canada, including some of the most listened-to radio brands in the industry: EZ Rock, Mix, The Bear as well as the News/Talk format on the AM band; IMS, a national advertising sales company; Sound Source Networks, a leading radio content service provider offering a comprehensive range of targeted programming; and two television stations located in northern British Columbia.
The purchase price is expected to comprise a cash component representing 80% of the total consideration while the balance consist of the issuance of Astral Class "A" non-voting shares. Consummation of this transaction is subject to several customary conditions, including completion of satisfactory due diligence, the signing of a definitive agreement and regulatory approval.
If and when it’s completed, Astral Media will become the largest radio broadcaster in Canada with 81 radio stations across the country. In addition to the 52 radio stations to be acquired from Standard, Astral Media also operates 29 radio stations in Québec and the Atlantic provinces. In Québec these include 21 FM stations comprising three highly complementary and successful French-language networks: Energie, RockDétente, and Boom FM. Astral Media also operates seven FM stations and one AM station in New Brunswick and Nova Scotia.
"With the acquisition of Standard Radio, Astral Media will not only be acquiring the best performing radio stations in the country, we will at the same time acquire a company with similar values and culture. said Ian Greenberg, president and CEO of Astral Media, in the official press release. "Over the past four decades the Slaight family has built a remarkable collection of strong radio brands and has contributed meaningfully in shaping the Canadian radio industry as we know it today. We are delighted with the prospect of welcoming Standard Radio’s employees into our team."
"We are looking forward to becoming a part of the Astral Media family," said Gary Slaight, president and CEO of Standard Radio. "We are pleased to see our legacy live on with a company such as Astral that has such a strong track record and commitment to its employees and to the Canadian radio and television industries."
The companies indicated they will have no further comment until a formal agreement is signed.
