Shaw Communications sells ViaWest to Peak 10 for approximately C$2.3 billionStaff Writer | June 14, 2017
Shaw Communications announced that it has entered into a share purchase agreement with GI Partners portfolio company Peak 10 Holding Corporation to sell 100% of its wholly-owned subsidiary ViaWest for approximately C$2.3 billion ($1.675 billion).
Acquisition An all cash transaction
The purchase price of approximately C$2.3 billion ($1.675 billion), represents an attractive return on Shaw’s original investment of $1.2 billion, or approximately C$1.3 billion at the prevailing exchange rate at the time.
Consideration pursuant to the transaction is comprised of all cash.
Shaw expects to realize net cash proceeds from the transaction of approximately C$900 million after the repayment of ViaWest level indebtedness of approximately $580 million, repayment of the $380 million Shaw credit facility borrowings associated with the original investment and subsequent INetU acquisition, and estimated transaction expenses and taxes.
The transaction is subject to customary conditions, including U.S. regulatory approval and is expected to close by the end of fiscal 2017.
The transaction is not subject to a financing condition. ■