Printer Friendly
The Free Library
22,710,190 articles and books

SHAW Communications Inc. to Acquire Fundy Communications.

CALGARY, Alberta--(BUSINESS WIRE)--April 29, 1999--

SHAW(TSE See Tokyo Stock Exchange.


1. See Tokyo Stock Exchange (TSE).

2. See Toronto Stock Exchange (TSE).
:SJR SJR Senate Joint Resolution
SJR Superjoint Ritual (band)
SJR St John Rigby (Catholic Sixth Form College)
SJR Signal-To-Jammer Ratio
SJR Saint Joseph Regional High School (USA) 
.B.) (Alberta Stock Exchange Alberta Stock Exchange

See Canadian Venture Exchange (CDNX).
:SJR.B.) (Alberta Stock Exchange:SJR.A.) (NYSE NYSE

See: New York Stock Exchange
:SJR) SHAW Communications Shaw Communications Inc. (TSX: SJR.NV.B NYSE: SJR) is a Canadian telecomunications company headquartered in Calgary, Alberta.

The company was founded by J.R. Shaw in 1966 as Capital Cable Television Co Ltd..
 Inc. announced today that it has agreed, subject to receipt of required regulatory approvals, to acquire 100 percent of the issued and outstanding shares of Fundy Communications Inc. ("Fundy"), which operates cable television systems serving approximately 192,000 subscribers, primarily in New Brunswick New Brunswick, province, Canada
New Brunswick, province (2001 pop. 729,498), 28,345 sq mi (73,433 sq km), including 519 sq mi (1,345 sq km) of water surface, E Canada.

As part of the transaction, SHAW will also acquire the telecommunications fiber backbone network A backbone network provides a path for the exchange of information between different LANs or subnetworks.[1] A backbone can tie together diverse networks in the same building, in different buildings in a campus environment, or over wide areas.  which interconnects 90 percent of the communities served in New Brunswick, the fiber interconnection between Moncton, New Brunswick and Halifax and Dartmouth, Nova Scotia Dartmouth (2001 pop.: 65,741[0]), founded in 1750, is a community and planning area of the Halifax Regional Municipality, a provincially designated Metropolitan Area, and a former city in the Canadian province of Nova Scotia. , as well as a cross-border fiber interconnect with AT&T to Bangor, Maine For other places with the same name, see Bangor.

Bangor is a city in and the county seat of Penobscot County, MaineGR6, United States. It is the major commercial center for eastern and northern Maine. For U.S.
. This fiber network spans 3200 route kilometers of which 2700 is situated in New Brunswick and 500 in Nova Scotia Nova Scotia (nō`və skō`shə) [Lat.,=new Scotland], province (2001 pop. 908,007), 21,425 sq mi (55,491 sq km), E Canada. Geography
. It is strategically important in that it will facilitate the launch of digital cable and Shaw(a)Home high speed internet access See how to access the Internet.  service in both New Brunswick and Nova Scotia, as well as enabling SHAW to take advantage of other potential synergies and economies in the regions. As part of this transaction, SHAW will grant a 20 year Irrevocable Right of Use (IRU Iru (ī`r), in the Bible, Caleb's eldest son. ) for 50 percent of the fiber network to CI Communications (a new company owned by a number of the current shareholders of Fundy) to operate a telecommunications business in New Brunswick.

In commenting on the transaction, Jim Shaw Jim Shaw is the name of:
  • Jim Shaw (artist), artist and musician
  • Jim Shaw, Australian actor
  • Jim Shaw (businessman), Canadian businessman
  • Jim Shaw (baseball player), athlete
  • Jim Shaw (hockey player), athlete
, President and Chief Executive Officer of SHAW, said: "We were pleased to be invited to participate in the bid process for the Fundy systems, and are delighted that we were selected to be the purchaser. This acquisition, combined with our pending purchase of Access Communications
For the former cable company in the Maritimes (now part of EastLink), see Access Communications (Nova Scotia).

Access Communications Co-operative Ltd.
 in Nova Scotia (subject to regulatory approvals) will result in our having a significant critical mass of over a quarter million subscribers in Atlantic Canada joined by a single network, with significant opportunities to lower signal distribution, marketing and telecommunications costs, and to create a menu of programming and internet-based services that would be available throughout the two provinces. As the largest cable operator in Atlantic Canada, Fundy has a core of highly-skilled cable television and telecommunications staff in New Brunswick. SHAW looks forward to supporting the objectives of the provincial government to attract more high-quality personnel to the province to support its new Internet and digital service launches".

The purchase price for Fundy is $460 million, approximately $150 million of which will be satisfied by the issuance of Class B Shares of SHAW. The shares will be valued based upon the 20-day average trading price Trading price

The price at which a security is currently selling.
 immediately prior to closing the transaction.

SHAW Communications Inc. is a diversified Canadian communications company whose core business is providing television services to approximately 1.5 million customers. It also has significant interests in radio broadcasting, television networks and direct to home satellite television service, as well as providing telecommunications and paging services to individual and business customers. SHAW is traded on the Alberta, Toronto and New York Stock Exchanges New York Stock Exchange (NYSE)

World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City.
. -0-

Shaw Communications Inc. to Acquire Fundy Communications

What Did We Buy?

- Shaw Communications to acquire Fundy Communication's cable
  operation in New Brunswick

- 192,000 cable customers in New Brunswick

- Shaw will also acquire the telecommunications fiber backbone network
  which interconnects 90 percent of the communities served in New
  Brunswick, the fiber interconnection between Moncton, New Brunswick
  and Halifax and Dartmouth, Nova Scotia, as well as a cross-border
  fiber interconnect with AT&T to Bangor, Maine. This fiber network
  spans 3,200 route kilometers of which 2,700 is situated in New
  Brunswick and 500 in Nova Scotia.

Fundy Overview

                                       YE 1999 EST
Homes passed                              225,000
Customers                                 192,000
Penetration (Percent)                        85.3
Extended Tier Customers                   130,000
Extended Tier Penetration (Percent)          67.7
Internet Customers (Dial-Up)                2,600

Why Fundy Communications?
- Good Strategic fit

- Major cluster in New Brunswick and Nova Scotia serving
  275,000 customers

- Fiber to the US border (Maine) will facilitate launch of
  Shaw(a)Home and other advanced services

                                       1999 Estimated
                                      Fundy          Shaw
Average Revenue/Customer (annual)     $390          $430
Basic Penetration (Percent)           83.6          77.3
Basic Customer Growth (Percent)        1.1           1.5
Internet Penetration (Percent)         1.4           6.9
Digital Penetration (Percent)            0           8.2

Terms & Valuation
Purchase Price                            $460 million
1999E Cash Flow                            $41 million
YE99 Estimated Customers                       192,000
Cash Flow Multiple, First Year                   11.2X
Per Subscriber Multiple                         $2,400

Scale Economics
                                Homes Passed       Subscribers
Access Communications              111,000            82,000
Fundy Communications               225,000           192,000
Atlantic Canada Totals             336,000           274,000
Chilliwack                          24,000            20,000
Shaw Communications (existing)   1,963,000         1,516,000
New Totals                       2,323,000         1,810,000

A map is avaliable of Shaw Cablesystems on the Internet at
COPYRIGHT 1999 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1999, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

 Reader Opinion




Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Geographic Code:1CNBR
Date:Apr 29, 1999
Previous Article:Dish Network Offers Free Satellite TV System Installed!
Next Article:AmeriStar Network, Inc. Announces Letter of Intent to Acquire Government Micro Resources, Inc.

Related Articles
The prince of tides.
SHAW to Re-Enter Atlantic Canada Cable Market.
Fundy Cable Modifies Consent Solicitation.
Fundy Cable Ltd./Ltee Receives Requisite Consents Pursuant to Consent Solicitation.
Shaw Receives CRTC Approval for Atlantic Canada Cable Acquisitions.
SHAW Issues US$137,693,490/ Cdn$202,000,000 Of @Home Exchangeable Debentures.
SHAW Issues US$137,693,490/ Cdn$202,000,000 Of @Home Exchangeable Debentures.
Canada: CTV Takeover & WIC Split.
Former Phillips VP launches his first newsletter, on "streaming media technology".

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters