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Shaw puts up $90 M for Monarch cable systems

Sun, 09/07/2003 - 8:00pm
Jeff Baumgartner

Canadian MSO Shaw Communications will shell out $90 million to acquire Monarch Cablesystems Ltd. properties in Alberta and southern British Columbia to fuel clustering efforts in the western half of the nation.

The two systems subject to the deal serve a combined 35,000 basic subs and generate about $10.5 million of annual operating income, Shaw said.

Shaw said it intends to pay for the assets with $25 million in cash or through the assumption of Monarch debt, with the balance coming via the issuance of class B non-voting shares of Shaw at $17.39 apiece.

The deal, still subject to approval by the Canadian Radio-television and Telecommunications Commission and the Toronto Stock Exchange, involves systems that "dovetail nicely with Shaw's existing systems and network in Alberta and B.C.," said Shaw CEO Jim Shaw, in a statement. "This transaction allows Shaw to further consolidate its position as the dominant cable television and Internet provider in Western Canada."

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