MONTREAL – Quebecor Media’s TVA Group is dismissing allegations made by a group of minority shareholders questioning some of the company’s recent business transactions.
The shareholders, led by investment management firm Jarislowsky, Fraser Ltd., have asked the Autorité des marchés financiers (AMF) to investigate “numerous material related-party transactions, potential conflicts of interest, and the proposed acquisition of the assets of A.R. Global Vision Ltd. (Global Vision) and related financing” at the French-language television network, reads the shareholders’ press release.
At issue, according to the shareholders, is the recent acquisition of TVA by QMI without the consent of or without any compensation paid to TVA's minority shareholders; the potential for conflict of interest due to some senior management being employees of TVA, QMI and Quebecor; and the company’s recent decision to buy the assets of film and television-related services provider Global Vision for $118 million, a move the shareholders claim was “motivated by… the political desires of Quebecor's controlling shareholder, Pierre Karl Péladeau”.
In a terse press release, TVA said that it considers the shareholders’ arguments are “without merits”.
“The Corporation would like to reiterate that its strategy has always been to create value for all of TVA's shareholders”, the release continues.
