Shaw Communications Acquires Mountain Cablevision Ltd.

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Shaw Communications Acquires Mountain Cablevision Ltd.

3:34 pm on July 17, 2009 | Category: Business, Telecom Services, Television, Corporate

Western Canada’s biggest cable company, Shaw Communications, is expanding eastward with the acquisition of Mountain Cablevision Ltd., an independent carrier based in Hamilton, Ontario.

Bidding for Mountain Cablevision was reportedly very competitive, with nearby cable giants, Rogers Communications and Cogeco, both attempting to scoop up the smaller company. Ultimately, however, an unexpected bid from Shaw won the day.

“We are proud of the successful communications company that we have built in Hamilton and surrounding area, and there isn’t any doubt in my mind that we have chosen the right company to acquire Mountain and to continue our tradition of service through commitment to our employees and loyal customers,” said Owen Boris, the founder of Mountain, in statement.

Although financial terms of the deal were not made public, RBC Capital Markets analyst Jonathan Allen estimates that Shaw will pay between $250 million and $300 million for the Hamilton company. The sale is expected to close in 8 to 16 weeks, pending approval by the CRTC and the Toronto Stock Exchange.

Mountain Cablevision currently serves some 41,000 cable TV customers, 28,000 high-speed internet subscribers, and 27,000 digital phone customers.