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UPDATE 1-Corus investors vote in favor of Shaw Media purchase

Published 2016-03-09, 11:15 a/m
© Reuters. UPDATE 1-Corus investors vote in favor of Shaw Media purchase
CJRb
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SJRb
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(Adds comment from activist investor, details, share reaction)
By Alastair Sharp
TORONTO, March 9 (Reuters) - Minority shareholders in Corus
Entertainment Inc CJRb.TO voted on Wednesday in favor of the
media company's planned C$2.65 billion ($1.99 billion) purchase
of Shaw Media from its sister company Shaw Communications Inc
SJRb.TO .
Activist investor Catalyst Capital had sought to scuttle the
vote, saying it unfairly favored the Shaw family that controls
both companies to the detriment of minority shareholders.

Corus said the tentative rate of approval of class B
non-voting shareholders was 78.54 percent, well above the 50
percent needed but far from unanimous.
Gabriel de Alba, a partner and managing director at
Catalyst, addressed reporters after the results were announced
to claim a small victory for the fund.
"You can see that the questions and concerns that Catalyst
raised have resonated across the minority shareholders," de Alba
said.
"Catalyst will continue to be progressive on this file to
make sure that minority rights are respected and that management
delivers on answers and performance," he said.
The deal, which still requires blessing from a broadcast
regulator, would give Corus control of more than one-third of
the English-language television market in Canada, and help Shaw
fund its expansion into wireless through the purchase of Wind
Mobile.
Corus has said the deal would be immediately accretive to
its earnings, a statement Catalyst has challenged.
Corus' listed Class B shares rose after the approval, up 1.9
percent at C$10.62 on the Toronto Stock Exchange.
Its Class A voting shares do not trade and are mostly held
by the Shaw family.
($1 = 1.3290 Canadian dollars)

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