Sirius XM Canada parent bids to take company private; CBC to sell stake

A Sirius Satellite Radio unit is shown installed in a vehicle in Washington. (© Jason Reed / Reuters/Reuters)

By James Bradshaw
Published Friday, May 13, 2016

Owners of Sirius XM Canada Holdings Inc. have made an offer to take the satellite radio business private, with the Canadian Broadcasting Corporation planning to sell its stake as the company’s other major shareholders consolidate their control.

The offering price is $4.50 per share in cash or stock with an option to take shares in Sirius XM Holdings Inc., which operates the U.S. arm of the dominant satellite radio brand, and currently owns about 32 per cent of the Canadian company.

In a statement, Sirius XM Canada said the proposal offers a 22.3 per cent premium on the Canadian company’s “unaffected closing share price on February 11, 2016.” On that day, The Globe and Mail first reported the company’s plans to go private with a proposed offer of $4.25 per share. The next morning, the company released a statement at the request of regulators confirming it was in early discussions about a “potential transaction.”

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