Canada’s Corus to Buy Shaw Broadcasting Unit for C$2.65B

Corus (CJR_B.TO) will acquire Shaw Media Inc From Shaw Communications for $2.65 billion.

Both Corus Entertainment and Shaw Communications are controlled by the Shaw family, through its multiple-voting shares.

Shaw Media, which controls important pay channels like HGTV and Food Network Canada, as well as Global, reported revenue of $232 million in the three months ending August 31st, with an operating income before restructuring and amortization of $48 million. Corus was formed in 1999 when the media assets of Shaw were spun out to create the new company.

Corus class B shares closed at C$11.21 on Tuesday.

“This is a transformational acquisition that redefines Corus and Canada’s media landscape”, said Doug Murphy, president and chief executive officer of Corus, in a statement.

The deal still requires approval from the Canadian Radio-television and Telecommunications Commission, as well as shareholders. Magna expects 2016 adjusted EBIT margin to be at the high 7% range. The Wind deal is also expected to be closed by about the same time.

Note to readers: This is a corrected story, An earlier version said $1.85 million in cash would go to Shaw rather than $1.85 billion.