Torstar, Ontario Teachers' Pension Plan buy into Bell Globemedia
By Adnews Staff
Telecommunications company BCE and holding company Woodbridge have formed a new shareholder arrangement for Bell Globemedia involving the Ontario Teachers' Pension Plan and Torstar. Under the deal, BCE's ownership of Bell Globemedia will be reduced from 68.5 percent to 20 percent. The pension plan and Torstar will each pay $283 million to acquire 20 percent stakes in the company. Woodbridge will increase its holding from 31.5 percent to 40 percent, at a cost of $120 million. According to the companies, the deal will provide new capital needed for the growth of Bell Globemedia. The deal, which is expected to close in the third quarter of 2006, is subject to regulatory approval, including that of the CRTC and the Competition Bureau. Bell Globemedia's assets include CTV, 15 specialty television channels and The Globe and Mail. No changes in the company's senior staff or operations are expected as a result of the deal. "This investment gives Torstar substantial exposure to conventional and specialty television in Canada and strengthens Torstar's position as a broadly-based media company," said Robert Prichard, president and CEO of Torstar. "By investing in partnership with Woodbridge, Teachers' and BCE, Torstar has established a meaningful position in the Canadian television industry. The Thomson family, through its steady ownership interest in The Globe and Mail, has long demonstrated a deep respect for editorial independence, journalistic freedoms and the importance of great newspapers to our nation. At Torstar we share these values and will continue to be equally vigilant with respect to the independence of the Toronto Star and our other newspapers."