Bell Globemedia to acquire CHUM
By Adnews Staff
Bell Globemedia has made a $1.7 billion takeover offer for CHUM Limited of Toronto. Through a corporation owned by its shareholders, Bell Globemedia will offer to acquire all of the issued and outstanding common shares of CHUM at a price of $52.50 per share. This corporation will also offer $47.25 for each of CHUM’s Class B shares. The controlling shareholders of CHUM and its board of directors have entered an agreement to support the offer. The Estate of Allan Waters and various related entities, which are CHUM’s controlling shareholders, hold approximately 88% of the outstanding common shares and 13% of the Class B shares. By agreement, these shares will be deposited to the offer. The offer is the result of a sale process conducted by Blair Franklin Capital Partners on behalf of the controlling shareholders. Bell Globemedia was approached as part of this process. “In Bell Globemedia's offer, we not only found value for shareholders, but confidence that we would be placing CHUM in the hands of an owner with the financial resources and track record to continue to grow and build on our collective legacy,” said Jim Waters, chairman of CHUM Limited. The deal is subject to regulatory approval. According to Bell Globemedia president Ivan Fecan, the company will maintain independent news divisions for CTV and Citytv stations. The company also expects that it will divest itself of CHUM’s A-Channel and Access Alberta television stations. “Bell Globemedia is clearly the most logical buyer of CHUM,” said Fecan. “There is a unique strategic fit to our operations that can make the united company a stronger national champion in broadcasting. We intend to maintain and build the valuable CHUM brands and develop more opportunities for Canadian programming.”