TORONTO and MONTREAL – Because of the altered – and altering – media and telecom space, wireless web and TV carrier Look Communications said late last night that it is no longer actively looking for as buyer.
Technically, it has‘‘ discontinued its strategic review and maximization of shareholder value process,’’ says the press release.
As reported by Cartt.ca, the process started in late 2006 and ‘‘was commenced in an environment which is entirely different to the Canadian information, communication and entertainment environment that exists today. The Canadian landscape has changed dramatically with the following being just some of the events that have transpired:’’ reads the release.
1. BCE Inc’s selling down its interest in Bell Globemedia (now CTVglobemedia) Inc. to a group of investors including the Woodbridge Company Limited, Ontario Teachers’ Pension Plan and Torstar Corporation for $1.3 billion;
2. CTVglobemedia’s acquisition of Chum Ltd for $1.7 billion;
3. Astral Media Inc’s purchase of Standard Radio Inc. for $1.08 billion;
4. BCE Inc’s sale of Telesat Canada for $3.42 billion;
5. Rogers Media Inc’s purchase of Chum Ltd broadcasting assets from CTVglobemedia Inc. for $137 million;
6. The February Consultation Paper issued by Industry Canada for the auction of 90 MHz of AWS Spectrum as well as other small segments of spectrum and the expected auction of that spectrum in the first part of 2008, a little over a year after the USA FCC Auctioned the identical spectrum to some 168 bidders in the USA. This process will result in discussions and comments on issues such as spectrum caps, infrastructure sharing, mandatory roaming and the definition of Affiliates and the bidding process relating thereto; and
7. BCE Inc’s announcement that it has entered into discussions with a group of leading Canadian pension funds to explore the possibility of taking the publicly traded company private.
In addition to the above industry changes, specific events with respect to Look Communications and its parent company Unique Broadband Systems have also occurred. These include:
1. The abrupt termination of discussions by "Interested Parties" in the shareholder maximization process;
2. The April actions of Bell Canada and Rogers described in the Company’s press release on April 12, 2007;
3. UBS’ instructions to its counsel to bring a motion to amend the UBS statement of claim against Microcell et al to now include the Inukshuk Wireless Partnership (owned directly or indirectly 50% by Rogers and 50% by Bell Canada); and
4. The expected statement of claim by Look against Bell Canada that has resulted from Bell Canada’s April 10, 2007 "Notice of Intent to Disconnect" services reported in the Company’s press release on April 12, 2007.
‘‘Look believes it is inappropriate and unproductive to continue the formal shareholder maximization process and accordingly has decided to discontinue at this time the formal process with "Interested Parties". Look may continue informal discussions should it be appropriate to do so,’’ reads the release.
‘‘Look believes its spectrum and broadcast license continue to increase in value as the Canadian mobile service market shrinks with the consolidation of mobile service providers, the potential for mandatory sharing of networks and infrastructure and the potential for mandatory roaming required with the existing mobile service industry. If the upcoming Canadian AWS auction is appropriately designed, Canada could potentially have additional regional and/or national service providers, offering additional services such as video, location based services and unlimited usage with flat rate pricing.
‘‘With the rapidly evolving Canadian mobile landscape, Look remains well positioned by having approximately 100 MHz of spectrum and the only mobile broadcast license in Canada. Look believes that consumers will only see world class services and lower consumer prices when foreign investment and ownership is permitted in Canada.
‘‘Look remains committed to maximizing shareholder value and Look’s approximately 100MHz of licensed spectrum in the 2.5GHz band together with its mobile broadcast license, remain scarce and unparalleled assets that position. Look exceptionally well to capitalize on this growing trend towards mobile information, communication and entertainment,’’ concludes the release.
