Shareholders OK Sirius XM Canada Privatization
Emmis isn’t the only media entity in North America that wants to go private.
Sirius XM Canada Holdings intends to do so, and the only thing stopping a privatization effort is the Canadian government. Despite opposition in recent months from dissident investors, Sirius XM Canada Holdings Inc. saw overwhelming support for its move to go private.
According to The Globe and Mail, two-thirds of all minority shareholders supported the transaction “at a subdued, 14-minute meeting” held August 30 in downtown Toronto.
Should the deal close, Sirius XM Holdings Inc. – the U.S. parent that’s owned by Liberty Media – would own most of the Canadian company’s shares.
Canadian investors Slaight Communications Inc. and Obelysk Media Inc., would each own a third of Sirius XM Canada’s voting shares, The Globe and Mail reports, to allow Sirius XM Canada Holdings from exceeding Canada’s foreign ownership restrictions. The Canadian Broadcasting Corp. (CBC) is selling its 12.5% stake in Sirius XM.
The deal still needs approval from the Canadian courts and the Canadian Radio-television and Telecommunications Commission (CRTC).
A group of minority shareholders holding a total of 8.4 million shares argued that the offer of $4.50 per share was undervalued, the newspaper reports. They also claimed to be victims of “coercive” tactics put in play to justify the lower price.