CFCF INC. ACQUIRES TELECABLE LAURENTIEN INC. IN HULL, P.Q.
MONTREAL, Nov. 16, ~CNW~ - CFCF Inc. announces that it has entered into an agreement in principle with Slaight Communications Inc. to purchase its interests in Telecable Laurentien Inc., which operates cable systems in the Hull, P.Q. area and serves approximately 67,000 subscribers. The cash consideration for the purchase is $63.5 million, subject to adjustments at closing. The closing, targeted for September 1993, is subject to a definitive purchase agreement and to regulatory approval. Mr. Adrien D. Pouliot, President and Chief Operating Officer of CFCF Inc., said the acquisition was part of the Corporation's strategy to capitalize on the opportunity to enhance its cable television holdings which already serve 206,000 subscribers in the Montreal area. "Laurentien is very well managed and its systems are in good condition even though we plan to modernize some parts. The area it serves has had a historically stable household formation and, similarly to CF Cable TV, serves a bilingual customer base. The proximity of Laurentien to CF Cable TV will facilitate the integration of the system", he said. The system generated approximately $14.2 million in revenue for the fiscal year ended August 31, 1992 and $6.1 million in earnings before interest, amortization and taxes. CFCF Inc. said it has enough borrowing capacity to finance the acquisition within normal senior lending ratios but added that it would consider raising some equity, either directly in CFCF Inc. or in its expanded cable television unit. For further information: Mr. Gerald R. Price, Vice-President, Finance, (514) 273-6311 (CF.) -0- 11~16~92
CO: CFCF INC. IN: TLS SU: TNM ST:
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|Date:||Nov 16, 1992|
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