Acquisition of Corus Québec radio stations: Cogeco will vigorously oppose Astral’s applications to the Federal Court of Appeal against the CRTC decision approving the transaction
PRESS RELEASE
For immediate release
Acquisition of Corus Québec radio stations: Cogeco will vigorously oppose Astral’s
applications to the Federal Court of Appeal against the CRTC decision
approving the transaction
Montréal, January 12, 2011 – COGECO Inc. (TSX: CGO) will vigorously oppose the applications
filed yesterday by Astral Media Radio Inc. (“Astral”) with the Federal Court of Appeal (the “Court”)
for leave to appeal the decision of the Canadian Radio-television and Telecommunications
Commission (“CRTC”) authorizing COGECO’s acquisition of the Corus Entertainment Inc.
(“Corus”) radio stations in Québec and for a stay of execution of the decision until the Court hands
down its final judgment. COGECO confirms its intention to complete the transaction, which is
expected to close on February 1, 2011.
COGECO management considers that the applications filed by Astral are without merit and
constitute a clear attempt to prolong Astral’s dominant position in all Québec commercial radio
markets despite the CRTC’s unequivocal and well-founded decision. It is noted that the CRTC
decision approving the transaction between Corus and COGECO was rendered on December 17,
2010 following a public hearing in September during which all parties involved, including Astral,
had the opportunity to fully present their arguments. Over 130 interveners from all walks of life and
regions of Québec intervened in support of the transaction in connection with the public hearing.
“COGECO is surprised and disappointed by this last ditch attempt by Astral to protect its dominant
position in the Québec radio industry by challenging a decision duly made by the CRTC, the
regulatory body entrusted with the duty to oversee all aspects of broadcasting in Canada, following
a rigorous, public and transparent process,” said COGECO Vice-President, Public Affairs and
Communications René Guimond. “The private commercial interests of Astral cannot be allowed to
stand in the way of promoting more effective and sustainable competition in the Québec radio
industry, the re-launch of radio stations that compete with Astral in Québec’s regions whose
survival is threatened, the creation of a new independent source of information with Cogeco News,
and nearly $9 million in benefits for the broadcasting system as a whole and for the communities
served by the stations as a result of this transaction,” added Mr. Guimond.
In its decision, the CRTC stated that this “transaction will ensure the maintenance and diversity of
information and public affairs programming in Montreal and the regions, which will benefit the
entire broadcasting system in Québec.”
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Subject to completion of the transaction as proposed, COGECO undertook to set up a news
agency, to be called Cogeco News, supplying local participating radio stations with predominantly
spoken-word news and public affairs content. As a result, local stations that use Cogeco News
content will be able to focus their resources on local coverage. This agency will also be able to
share content with small independent private stations and community stations, providing broader
coverage of issues arising in the regions.
ABOUT COGECO
COGECO is a diversified communications company. Through its Cogeco Cable subsidiary,
COGECO provides its residential customers with Audio, Analogue and Digital Television, as well
as HSI and Telephony services using its two-way broadband cable networks. Cogeco Cable also
provides to its commercial customers, through its subsidiary Cogeco Data Services, data
networking, e-business applications, video conferencing, hosting services, Ethernet, private line,
VoIP, HSI access, dark fibre, data storage, data security and co-location services and other
advanced communication solutions. Through its Cogeco Diffusion subsidiary, COGECO owns and
operates the RYTHME FM radio stations in Montréal, Québec City, Trois-Rivières and Sherbrooke,
as well as FM 93 in Québec City. COGECO’s subordinate voting shares are listed on the Toronto
Stock Exchange (TSX: CGO). The subordinate voting shares of Cogeco Cable are also listed on
the Toronto Stock Exchange (TSX: CCA).
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Information: Marieke Tremblay
Tel: 514-764-4700