TORONTO – The Competition Bureau has approved CanWest Global Communications Corp.’s proposed $2.3-billion takeover of Alliance Atlantis Communications Inc., the two broadcasters announced Monday.
The deal still must get the greenlight from the CRTC. It also awaits a court decision by the Ontario Superior Court of Justice, which will hold a fairness hearing on May 18 to determine whether Alliance Atlantis requires the consent of the minority shareholders of Movie Distribution Income Fund (MDIF) before proceeding with its sale to CanWest Global Communications and Goldman Sachs.
Under the proposed deal, CanWest will contribute $200 million to the takeover of Alliance Atlantis, which owns 13 specialty TV channels including Showcase, History Television, and Discovery Health and part of the CSI television crime series.
Goldman Sachs will hold 71% share while CanWest will have a 29% stake. CanWest is aiming to increase its ownership by 2011.
The ultimate ownership split depends on the performance of the combination of the Alliance Atlantis broadcast assets with Winnipeg-based CanWest’s Global TV network.
