CanWest Sells Its Interests in Chile's La Red TV Network.WINNIPEG, Manitoba--(BUSINESS WIRE)--Nov. 12, 1996-- CanWest Global Communications CanWest Global Communications Corp. TSX: CGS TSX: CGS.A NYSE: CWG is one of Canada's largest international media companies. The company's head office is situated in Winnipeg, Manitoba, at the tallest building (CanWest Global Place) in the city and it is on the (NYSE NYSE See: New York Stock Exchange CWG CWG Conversations with God CWG Core Working Group CWG Certification Working Group (WiMAX Forum) CWG Collaboration Working Group CWG Commercial Working Group (TAT-14) , TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). CGS CGS centimeter-gram-second system. CGS or cgs abbr. centimeter-gram-second system. CGS, c.g.s. .S CGS.A) -- CanWest Global Communications Corp. announced today that it has sold its 50 percent interest in Chile's La Red Television for US$9.5 million. As a result of this sale, CanWest will no longer have any ongoing obligations -- financial or otherwise -- with respect to La Red. The sale of La Red will have no impact on CanWest's earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the , as La Red has been treated as a discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. since 1995. A loss from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. in respect of the sale of La Red, net of income tax recoveries, will be reported in CanWest's annual results for the year ended August 31, 1996, which are expected to be released later this week. The reported loss in respect of the sale of La Red will be C$4.4 million. "Last year, we announced that we had decided to put our Hispanic strategy on hold so that we could focus all of our energies on developing opportunities in the English-speaking market," said I.H. Asper, O.C., Q.C., CanWest's Chairman and Chief Executive Officer. "Our main thrust is to expand our core television broadcasting business in our existing markets. "In Canada, we recently received a licence to operate PRIME TV, a specialty cable service aimed at audiences aged 50 and over, we have an application before the CRTC CRTC Canadian Radio-Television & Telecommunications Commission CRTC Combat Readiness Training Center CRTC Cathode Ray Tube Controller CRTC China Railway Telecommunications Center CRTC Cold Region Test Center CRTC Continuously Regenerated Trap Column for a new television station in Victoria, and an application will be presented in December for our purchase of the controlling interest in CKMI-TV, Quebec City. Internationally, we reached an agreement in October 1996 with Westpac Banking Corporation to acquire its 50% interest in New Zealand's TV3 effective April 1, 1997, and TV3 was awarded a licence to operate a new urban-focused national network commencing in 1997," he added. "Although La Red experienced significant revenue growth in the first year of our involvement, the funding requirements turned out to be significantly more than projected, as was the human resource demand on CanWest for the venture," said Peter M. Liba Peter Michael Liba, CM, OM (May 10, 1940 - June 21,2007) was a Manitoba journalist and office holder. From March 2, 1999, to June 30, 2004, he served as the lieutenant-governor of Manitoba. , C.M., CanWest's Executive Vice-President, Corporate Affairs. "Because of the isolation factor, and the cultural, social and economic differences between Canada and Latin America, it was clear that the only way La Red could successfully be turned around was to be part of a larger, more comprehensive Hispanic strategy," Mr. Liba added. "Given that it would have been necessary for CanWest to devote additional human and financial resources to the project, it was our view that these resources, particularly the human talent, could be more profitably deployed elsewhere." CanWest has been exploring a variety of options over the past several months regarding its future involvement in La Red, including the possibility of selling its interest. CanWest held numerous discussions with interested parties from North America and Latin America about purchasing its share of La Red. "CanWest has always deployed a disciplined and well-defined acquisition strategy however, the Company also has an equally disciplined and well-defined exit strategy to be used whenever the need arises," said Mr. Asper. CanWest Global Communications Corp. (NYSE: CWG and TSE: CGS.S and CGS.A) is a leading international television broadcaster. In Canada, the Company owns and operates the CanWest Global System, Canada's largest private sector broadcaster. Internationally, the Company owns substantial economic interests in Australia's Network Ten and New Zealand's TV3. Through these broadcasting operations, CanWest reaches approximately 35.8 million English-speaking people in markets that are estimated to have generated approximately $4.4 billion in advertising expenditures in 1995. CONTACT: CanWest Global Communications Corp. Peter M. Liba, 204/956-2025 204/947-9841 (FAX) |
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