Shaw to raise $370m with Corus sale

Canadian telco Shaw Communications has unveiled plans to sell its 39% stake in fellow Canuck operator Corus Entertainment in a deal valued at almost C$550m (US$372m).

The agreement will see Shaw sell more than 80 million of its class B shares for C$6.80 each, after striking a deal with Corus and underwriters led by bank TD Securities.

Shaw, which has been looking to offload its Corus shares for around a year, will no longer have a stake in the Canuck company following the closure of the deal, which is valued at C$548m and is expected to take place before May 31.

Shaw said it would use the funds for “general corporate purposes,” with numerous reports suggesting the cash would be funnelled into its movie business rather than broadcasting.

The news comes over three years after Corus acquired Shaw Media, the TV unit of Shaw Communications, for C$2.65bn.

The deal, which gave Shaw the 39% stake in Corus, moved the former’s channels, such as Slice, National Geographic Canada, Nat Geo Wild Canada, BBC Canada, HGTV Canada and History Canada, under the same roof as Corus’s networks, which include Disney Channel, W Network, YTV and Treehouse.

Both Corus and Shaw Media are controlled by the Alberta-based Shaw family, although they are listed separately on the Toronto Stock Exchange.