WINNIPEG and AUCKLAND – CanWest Global Communications is officially getting out of New Zealand.
The company announced this morning that its subsidiary, CanWest MediaWorks Ireland Holdings (CMIH), has accepted a takeover offer from HT Media Limited (HT Media) with respect to all of the shares that it holds in CanWest MediaWorks (NZ) Limited (MWL) for a cash price of NZ$2.33 per share (CMIH had previously received a special dividend of NZ$0.10 per share, approximately NZ$16 million in total, from MWL).
CMIH holds approximately 70% of MWL’s issued ordinary shares and its acceptance fulfills the minimum acceptance condition in the takeover offer. HT Media is a wholly-owned subsidiary of certain funds managed or advised by Ironbridge Capital Pty Limited, an Australian private equity firm, reads the press release.
The takeover offer by HT Media, received earlier today, and its acceptance by CMIH are pursuant to the terms of a lock-up agreement entered into on May 8, 2007. The proposed acquisition remains subject to approval by New Zealand’s Overseas Investment Office, which is expected early next week.
Upon receipt of such approval, the takeover offer will be declared unconditional by HT Media. CMIH will transfer its MWL shares to HT Media and receive proceeds of approximately NZ$370 million (approximately C$296 million at current foreign currency exchange rates) within 7 days of the offer being declared unconditional.
