GATINEAU – The CRTC has approved Persona Communications’ acquisition of Delta Cable and Coast Cable from John Thomas and his family.
Persona is financing the deal with a $90 million term loan from J.P. Morgan Securities.
Since J.P. Morgan is non-Canadian, the Commission asked about the American company’s potential influence over Persona.
"Persona explained that while the credit agreement would contain covenants that are customary for debt financings allowing the lenders to monitor the performance and operation of the business, J.P. Morgan would not have any direct say on financial decisions or other business-related decisions. Persona further explained that J.P. Morgan would not own any shares of Persona, directly or indirectly, and would not receive an option to acquire any shares of Persona or of its parent corporation," reads Tuesday’s decision.
"Persona did confirm that the effective control of Persona and, if applicable, of the partnership comprised of Persona and a wholly-owned subsidiary of Persona, would be with Canadians at all times. Persona also confirmed that the composition of its Board of Directors would not be affected by the transaction."
