ASTRAL COMMUNICATIONS BUYING RADIOMUTUEL
By Adnews Staff
Astral Communications Inc., a communications company has made an offer to purchase Radiomutuel Inc., a Quebec broadcaster in radio, specialty television and outdoor advertising. Astral currently owns 2, 957, 516 subordinate voting shares of Radiomutuel. According to Astral's president and chief executive officer, Ian Greenberg, Astral will pay approximately $224 million in cash to purchase the 75 per cent of Radiomutuel it does not own.
The deal is still subject to the approval of the Canadian Radio-television and Telecommunications Commission. Astral will deposit the acquired shares in trust until the CRTC has made its decision. Radiomutuel own two specialty channels, Canal Vie and Canal Z, which will go to air in January 2000. It is also involved in MusiquePlus and MusiMax with Chum Ltd. In radio, its FM division, Reseau Radio Energie, operates eight stations. On the AM frequency, it owns three stations and is partnered with Telemedia for CKAC in Montreal and CHRC in Quebec. In the outdoor advertising field, Radiomutuel owns 72 per cent of the Omni Outdoor and company Limited partnership. Astral's offer will be mailed to shareholders before June 15, 1999.