WINNIPEG – CanWest got out of Ireland on Friday for almost $200 million.
CanWest Global Communications announced it has sold the 45% stake in Irish broadcaster TV3, plus some other assets, to funds managed by Doughty Hanson & Co., one of the largest independent private equity firms in Europe.
The total sale price 265 million Euros, or C$381 million, at current foreign currency exchange rates.
The purchase price will be payable in cash at completion, and the deal is subject to certain customary price adjustments and regulatory approvals. It is also subject "in certain respects to a pre-emption right in favour of Granada Media Group Limited, a subsidiary of U.K. media company ITV plc," says the press release.
Subject to the aforementioned price adjustments to be determined upon completion of the transaction, CanWest expects to receive approximately 138 million Euros, or approximately C$198 million.
"We are extremely pleased with the agreement that we have reached for the sale of TV3," said Tom Strike, president of CanWest MediaWorks International. "Launched in 1998, TV3 was the first private television broadcaster in Ireland, and its enormous success is a testament to the vision of our partner and network founder, James Morris, and hard work of the network’s management and staff. We have every confidence that TV3 will continue as one of Ireland’s pre-eminent free-to-air television networks under its new owner."
"This transaction is yet another important step in CanWest’s ongoing program to improve its financial capacity and flexibility. That additional capacity and flexibility will be used to strengthen our existing core operations and to pursue additional growth opportunities," added CanWest CEO Leonard Asper.
