Sirius XM Canada is going private.
The Radio-Television & Telecommunications Commission (CRTC) has given its approval to a planned transaction which, it says, “will benefit Canadians and Canadian music artists for years to come”.
As part of the privatization approval, the broadcast regulator has stipulated that $29 million must be allocated over the next seven years to support French and English-language initiatives through Radio Starmaker Fund, Fonds Radiostar, FACTOR, Musicaction and the Community Radio Fund of Canada.
Sirius XM Canada is also advised to pay a 1 percent “discretionary” amount to the country’s Broadcast Participation Fund.
The move towards privatisation will see Sirius XM Canada cease to be publicly traded. The broadcaster has 2.8 million total subscribers in Canada and transmits programming in English and French. The transition to a private company started August last year when shareholders gave their approval for the move.
The transaction towards private status is expected to see the publicly-owned Canadian Broadcasting Corporation divest its 12.5 percent stake in the satellite broadcaster.
All of the shares of the Company will be acquired by three current major shareholders of the Company: Slaight Communications Inc., Obelysk Media Inc. and Sirius XM Radio Inc. The date for completion can be no later than May 31, 2017.
In its second quarter fiscal 2017, Sirius XM Canada reported quarterly revenue of $86.9 million versus $84.4 million a year ago.
The transactional value is pegged at $479 million.