The Ontario Teachers’ Pension Plan (Teachers’) announced Friday it has sold its 25% share in CTVglobemedia Inc. in a $1.5-billion deal.
The sale positions Teachers’ Private Capital—the pension plan’s private investment department—to continue its active pursuit of further global investment opportunities for its telecom, media and technology portfolio, said Neil Petroff, Teachers’ executive vice-president and chief investment officer.
Meanwhile, Bell Canada Enterprises Inc. (BCE) has now taken over 100% ownership of CTV, after announcing its acquisition of Torstar’s 20% interest in the company, worth $345 million.
“Bell’s purchase provides a timely and efficient exit from our investment in CTVglobemedia,” Petroff said. “We continue to view telecom, media and technology as important and exciting sectors that we are well positioned to invest in going forward.”
The transactions are subject to customary approvals and closing conditions, including approval by the Canadian Radio-television and Telecommunications Commission (with respect to the sale to BCE Inc.) and the Competition Bureau. The transactions are expected to close by mid-2011.
It gives Bell the lion’s share of the telecommunications and media market, with the merger of the country’s largest telecom carrier and television network.
As a result, CTVglobemedia, which was created a decade ago when CTV merged with the Globe and Mail, has been drastically altered.
The Thomson family, through its holding company Woodbridge Co. Ltd., regains a majority ownership of the Globe with an 85% stake, while BCE will retain a 15% share.
In 2000, BCE also made a similar move into broadcasting, when then-CEO Jean Monty made a $2.3-billion bid to acquire CTV, combining it with the Globe to create Bell Globemedia.
But in 2005, Bell sold off most of that stake to Teachers,’ Woodbridge and Torstar Corp., renaming the company CTVglobemedia.
