MONTREAL — the Conseil de la radio-television and telecommunications commission (CRTC) has approved, Thursday, the transaction concluded last April between Cogeco and RNC Media.
According to the terms of the agreement unveiled in the spring, Cogeco completed the acquisition of 10 regional radio stations of RNC Media, for the sum of $ 18.5 million. There are five antennas in the Saguenay-Lac-Saint-Jean, three antennas in the Abitibi region, a station in Lachute and Hawkesbury, Ontario.
RNC Media retains its five radio stations in urban areas, two in Gatineau, and two in Quebec and one in Montreal.
In its decision, the CRTC approves the request for an ” authorization to acquire the French-language stations and their transmitters.
Cogeco will pay the sum of 1 184 217 $, in installments over the next seven years, ” for the benefit of various projects intended to support and promote canadian music and to increase the diversity of the programming.”
This contribution, called a “tangible benefit” is a requirement of the law that forces the companies to radio to pay at least six percent of the value of the transaction to the development fund.
In its application, Cogeco Media asked at the same time the renewal of the licenses of these stations to the same conditions in order to continue their operation.
The decision issued by the CRTC also allows you to learn that the transaction between the two media groups will be completed in two steps. The first transaction is a merger of two business entities of the group RNC so that all of the stations included in the sale are the property of a single company. The second transaction comes to formalize the purchase by Cogeco.
In its analysis, the CRTC concluded that the transaction would not have any consequence ” on the number of distinct voices “.
This acquisition of control by Cogeco mark the end of an era for the RNC, originally known as Radio Nord, a company that had started in 1948 with three radio stations in Abitibi-Témiscamingue.