TORONTO and MONTREAL – As it awaits Court approval on the sale of its spectrum and broadcast license to Inuksuk, Look Communications is still searching for a buyer for its remaining three assets.
On the block are roughly 25,000 video and Internet subscribers; approximately $300 million in tax “attributes” (losses); plus Look’s network consisting of its two operating centers in Toronto and Montreal, 26 one-way broadcast sites and 10 two-way broadcast sites.
"We believe there could be a number of parties interested in our remaining assets, from the new entrants in the mobile business looking for network infrastructure to any number of parties that could benefit from the tax attributes, including income trusts which face a pending conversion deadline, and so we will continue to pursue additional transactions," said vice chairman and CEO Gerry McGoey, in a statement.
Unique Broadband Systems, Look’s parent company, said that it will help Look to “realize value" for the remaining assets, including potentially selling its 51.8% interest “to facilitate the full value of Look’s tax attributes”.
A company spokesperson told Cartt.ca that Look is operating under the assumption that Court approval of the Inukshuk purchase will be received by the end of this month. Upon regulatory approval, Inukshuk must pay Look any outstanding balance on the $80 million purchase price to close the transaction, or the assets will remain with Look.
The potential sale of the remaining assets will not be subject to Court or Look shareholder approvals, once the plan of arrangement process wraps up with the expected Court approval.
Look said that it will wind down its existing video and Internet services over the next 90 days in order to minimize disruption for its subscribers with the transfer of the spectrum, meaning the subscriber roll, not any piece of the distribution system, is what’s up for sale.
– Lesley Hunter
