SHAW COMMUNICATIONS ACQUIRES FUNDY COMMUNICATIONS
By Adnews Staff
SHAW Communications of Calgary, Alberta has agreed to purchase 100% of Fundy Communications. Fundy operates cable television systems serving subscribers in New Brunswick. The purchase price for Fundy is $460 million. The deal is subject to the approval of the Canadian Radio-television Telecommunications Council. As part of the purchase, SHAW will also acquire the telecommunications fiber network connecting communities in New Brunswick, the fiber connection between Moncton, New Brunswick and Halifax and Dartmouth, Nova Scotia, as well as a cross-border connection with AT&T to Bangor, Maine. The acquisition enables SHAW to launch its digital cable and SHAW @Home Internet access services in both New Brunswick and Nova Scotia. Included in this transaction is a grant of 50% of the network for a Irrevocable Right of Use (IRU) by SHAW for 20 years to CI Communications, a new company owned by current shareholders of Fundy. CI Communications will operate a telecommunications business based in New Brunswick.