WINNIPEG, Aug. 15 /CNW/ - CanWest Global Communications Corp. ("CanWest")
and Goldman Sachs Capital Partners ("Goldman Sachs") announced today that
AA Acquisition Corp., a subsidiary of CanWest, has completed its acquisition
of all of the outstanding shares of Alliance Atlantis Communications Inc.
("Alliance Atlantis") for $53.00 cash per share.
Concurrently with the completion of the acquisition, Alliance Atlantis'
broadcasting, entertainment and motion picture distribution businesses were
reorganized and split into separate groups that will each be operated on a
stand-alone basis, with certain other assets of Alliance Atlantis to be held
The broadcasting businesses are held in various indirect subsidiaries of
CW Investments Co. ("CW Investments") in which CanWest indirectly holds
two-thirds of the voting shares and an approximate 35% equity interest, and
Goldman Sachs indirectly holds one-third of the voting shares and an
approximate 65% equity interest, inclusive of all transaction costs. CanWest
has no continuing interest in Alliance Atlantis' entertainment or motion
picture distribution businesses.
The shares and partnership interests of certain of CW Investments'
subsidiaries that hold the specialty television channels which are regulated
by the CRTC have been placed into a trust under the direction of Jim
Macdonald, the independent trustee, pending the CRTC's decision to approve the
change of ownership and transfer of control of the specialty television
channels to CW Investments. A hearing in respect of the approval being sought
is scheduled for September 5, 2007. Should CRTC approval be granted, these
shares and partnership interests will be released from the trust and delivered
to a subsidiary of CW Investments. CW Investments' specialty channels and
CanWest's Canadian television business will then be managed by CanWest on an
integrated basis under the terms of a management and administrative services
"We are extremely pleased that the acquisition of Alliance Atlantis has
been completed," said Leonard Asper, President and CEO of CanWest. "When we
embarked on this process at the beginning of the year, it was because we
believed in the significant opportunities that exist by combining CanWest's
Canadian television assets with the channels that have been created by the
team at Alliance Atlantis. Today brings us one step closer to creating an even
stronger Canadian broadcasting company."
Effective on the completion of the Alliance Atlantis acquisition, Michael
MacMillan has agreed to serve as a consultant to CW Investments for a period
of time, offering advice and guidance on business and transitional matters.
Phyllis Yaffe will work with the independent trustee until such time as the
CRTC renders its decision, after which she will also be leaving but similarly
will be available to CW Investments in a consultative capacity for a period of
About CanWest Global Communications Corp.
CanWest Global Communications Corp. (www.canwestglobal.com) an
international media company listed on the TSX (trading symbols: CGS and CGS.A)
is Canada's largest publisher of English language daily newspapers, and owns,
operates and/or holds substantial interests in free-to-air and
subscription-based television networks, out-of-home advertising, web sites,
and radio stations and networks in Canada, New Zealand, Australia, Singapore,
Indonesia, Turkey, the United States and the United Kingdom.
About Goldman Sachs
Founded in 1869, Goldman Sachs is one of the oldest and largest
investment banking firms. Goldman Sachs is also a global leader in private
corporate equity and mezzanine investing. Established in 1991, the GS Capital
Partners Funds are part of the firm's Principal Investment Area in the
Merchant Banking Division. Goldman Sachs' Principal Investment Area has formed
13 investment vehicles aggregating US$56 billion of capital to date. For more
information, please visit www.gs.com/pia.
This news release includes forward-looking statements which reflect the
current expectations of CanWest. Forward-looking statements are those which
are not historical. The reader should not place undue reliance on such
forward-looking statements. They involve known and unknown risks,
uncertainties and other factors that may cause them to differ materially from
anticipated future results or expectations expressed or implied by such
forward-looking statements. Certain risks, uncertainties and other factors are
described in materials filed CanWest with the security regulatory authorities
in Canada from time to time, which are available at www.sedar.com. CanWest
undertakes no obligation to publicly update or revise any forward-looking
statements or information, whether as a result of new information, future
events or otherwise.
For further information:
For further information: Deb Hutton, SVP Corporate Communications, (416)