Ontario Teachers’ Pension Plan, Toronto, on Friday announced it will sell its 25% ownership stake of CTVglobemedia Inc. to BCE Inc.
BCE, which currently has a 15% equity stake, also will purchase the remaining 60% equity stake from Woodbridge Co. Ltd. and Torstar Corp., according to a BCE news release.
Including the value of BCE’s current 15% equity stake, the combined transaction has an equity value of C$1.5 billion (US $1.4 billion) and debt value of C$1.7 billion for a total transaction of C$3.2 billion. The deal is expected to close in mid-2011.
Teachers’ Private Capital, the C$96.4 billion pension plan’s private equity unit, will use funds generated from the sale to “continue its active pursuit of further global investment opportunities for its significant telecom, media and technology portfolio,” according to an OTPP news release.
“(BCE’s) purchase provides a timely and efficient exit from our investment in CTVglobemedia,” Neil Petroff, OTPP executive vice president and chief investment officer, said in the OTPP news release. “We continue to view telecom, media and technology as important and exciting sectors that we are well positioned to invest in going forward.”
OTPP spokeswoman Deborah Allan could not immediately be reached for comment.
CTVglobemedia owns the CTV television network — with 27 stations across the country — and the Globe and Mail newspaper in Toronto. Separately, Woodbridge will acquire ownership of the Globe and Mail, in which Bell will retain a 15% equity position, according to the BCE news release.