Shaw Communications
Inc. SJR ("Shaw" or "the Company") announced today
that it has entered into agreements with Rogers Communications Inc.
("Rogers") to sell to Rogers its shares in its Hamilton-based cable
operations, Mountain Cablevision Limited ("Mountain Cable"), grant to
Rogers an option to acquire Shaw's spectrum licenses for advanced
wireless service in British Columbia, Alberta, Saskatchewan, Manitoba
and Northern Ontario (the "Spectrum Licenses") and to purchase from
Rogers its 33.3% partnership interest in the TVtropolis General
Partnership ("TVtropolis").
The consideration payable by Rogers to Shaw for Mountain Cable, the
Spectrum Licenses and other transactions described below, net of
TVtropolis, is approximately $700 million of which (a) $400 million
represents the purchase price for the Mountain Cable transaction
($250 million of which is an up-front deposit to be received today),
and (b) $50 million represents the purchase price of the option
granted by Shaw to Rogers to acquire the Spectrum Licenses (the
"Spectrum Option"). The Company acknowledges that the cash
consideration to be received by Shaw with respect to Mountain Cable
reflects the value of the bundle of transactions taken together, as
well as consideration for timing of cash payments between the
parties. Shaw is paying $59 million for the remaining interest in
TVtropolis and this will be paid today as a deposit. The final option
exercise price for the Spectrum Licenses will be settled in
connection with the negotiation over the next several months of the
provision of certain services, assets or rights by Shaw to Rogers.
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