Reuters: Regulatory News: UPDATE 1-Astral shareholders OK takeover by BCE

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UPDATE 1-Astral shareholders OK takeover by BCE May 24th 2012, 17:21 Thu May 24, 2012 1:21pm EDT * Takeover now needs regulator approvals * Astral says it had other suitors May 24 (Reuters) - Shareholders of Astral Media Inc signed off on telecom company BCE Inc's takeover of the Montreal-based television and radio firm on Thursday, leaving only regulatory hurdles in the way of the C$3 billion ($2.92 billion) deal. The purchase could attract close scrutiny from regulators, however, given BCE's growing heft as a broadcaster since buying CTV, Canada's largest private broadcaster, in a deal that closed last year. BCE, the parent of Bell Canada and the country's largest telecom company, is buying Astral to lock up more programming for its media platforms and to expand its presence in French-speaking Quebec. It has already said it will sell some of Astral's radio stations after the purchase so that the combined company does not exceed the maximum number of stations one company is allowed to own in a geographical market. Astral's television portfolio includes the Movie Network and HBO Canada, as well as French-language Super Écran and Canal Vie, among more than 20 specialty cable and pay-TV channels. More than 99 percent of the votes cast by each of Astral's three classes of shares were in favor of the takeover, which Astral's board had recommended. "This enthusiastic support aptly reflects the value that the negotiated agreement represents for all Astral shareholders," said Astra Chief Executive Ian Greenberg, who will join BCE's board once the deal closes. Astral said in an information circular ahead of the shareholder vote that it had discussed a possible sale to other companies but that Greenberg ultimately decided that the offer from BCE, which is also based in Montreal, was the best. The deal must still be approved by Canada's telecom and broadcast regulator and its competition watchdog. Astral said it expects it to close in the second half of 2012. BCE is buying Astral's Class A non-voting shares for C$50 a share and its Class B subordinate voting shares for C$54.83. It is also paying for C$50 million for "super shares" owned by the Greenberg family. The non-voting shares were slightly higher at C$48.67 late on Thursday morning, while the voting stock was at C$53.00. BCE will fund the deal through a combination of cash and shares. Including the assumption of debt, the deal values Astral at about C$3.38 billion. Link this Share this Digg this Email Reprints

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