XM Canada and Sirius Canada to merge
Canadian Satellite Radio Holdings, the parent company of XM Canada, and Sirius Canada have entered into an agreement to combine their satellite radio companies. The all-stock merger has a combined value of approximately $520 million, including long-term debt of approximately $130 million. Under the terms of the agreement, Sirius Canada shareholders will be issued treasury shares of CSR representing a 58% ownership share. Thirty percent of the voting shares, representing a 23% ownership stake, will belong to a company controlled by CSR chairman John Bitove. CBC/Radio-Canada will hold a 20% voting interest and a 15& equity interest. Slaight Communications will also hold a 20% voting interest and a 15% equity interest. Sirius XM Radio will have a 25% voting interest and a 37% equity interest. The deal remains subject to shareholder and CRTC approval. Mark Redmond, currently president and CEO of Sirius Canada, will become president and CEO of the merged entity. Michael Washinushi, currently chief financial officer of XM Canada, will be CFO of the new company. Michael Moskowitz will remain CEO of XM Canada and Jason Redman will remain as CFO of Sirius Canada through the approval process and transition. "The benefits of a merger are clear and together we'll be better able to create more growth and opportunity for shareholders, accelerate technological innovation and ensure that satellite radio is able to compete in the rapidly evolving audio entertainment industry," said Redmond. "This combination is the next logical step in the evolution of satellite radio in Canada." The combined company will have a total subscriber base of approximately 1.7 million.