WINNIPEG – CanWest Global Communications Corp. announced Monday it has inked a deal to sell all its shares of CanWest MediaWorks (NZ) Ltd. for NZ$727 million in cash.
The deal was brokered through CanWest subsidiary, CanWest MediaWorks Ireland Holdings (CMIH), which has entered into a lock-up agreement with HT Media Ltd., a wholly owned subsidiary of certain funds managed or advised by Australian private equity firm Ironbridge Capital Pty Ltd.
The per share price is NZ $1.63, which is a 49% premium to the share price on October 20, 2006, the day prior to CanWest’s announcement it was reconsidering its ownership in CanWest Media Works (NZ) Ltd. CMIH holds about 70% of MWL’s issued shares.
CMIH expects to receive aggregate gross proceeds of about NZ$386 million (about CDN$314 million) for the 158.6 million ordinary shares that it owns in MWL. CanWest president and CEO Leonard Asper said proceeds of the sale would help reduce CanWest’s debt.
A takeover offer to be delivered by MWL within seven days is subject to a minimum acceptance condition of 50%, and must still be approved by New Zealand’s Overseas Investment Office.
“We have every confidence that MWL will continue as New Zealand’s pre-eminent media company under its new owner,” said CanWest MediaWorks International president Tom Strike in a statement.
Citigroup Global Markets Australia Pty Limited was the financial advisor and Russell McVeagh was the legal advisor to CMIH for the transaction.
