CanWest first foreigner to nab U.K. radio licence, do IPO for print properties

The relaxing of the U.K. Communications Act has enabled Winnipeg-based CanWest Global Communications to become the first foreign company to be granted a licence by OFCOM, the broadcast regulatory body in the U.K. The FM licence has been issued for a 12-year term and the new station, Original 106, will target listeners aged 40 to 59 in the areas of Southampton, Bournemouth, and Portsmouth in southern England.
CanWest owns 95% of the station while Seven Broadcast, operated by two U.K. radio consultants, holds the remaining 5%.

The company is not new to international expansion. In addition to its TV, radio, and newspaper holdings in Canada, CanWest has a stake in Network Ten TV in Australia, five radio networks in New Zealand, and in TV3, Ireland's first commercial TV station. Its previous attempts to expand in the U.K. involved failed bids for a TV licence and radio licences in Belfast and Manchester. In a CanWest release, president/CEO Leonard Asper said the company was encouraged by the awarding of the licence and plans to 'vigorously pursue our international expansion initiatives.'

Adding to the kitty, CanWest is going public with a chunk of its newspaper and interactive business. CanWest MediaWorks Income Fund would hold approximately 28% of the Canadian newspaper business. CanWest-owned The National Post will not be included in the IPO. The transfer should yield about $1.45 billion. That money plus $830 million the company will borrow will be used to buy the businesses of CanWest MediaWorks.
By Staff 
September 8, 2005

The relaxing of the U.K. Communications Act has enabled Winnipeg-based CanWest Global Communications to become the first foreign company to be granted a licence by OFCOM, the broadcast regulatory body in the U.K. The FM licence has been issued for a 12-year term and the new station, Original 106, will target listeners aged 40 to 59 in the areas of Southampton, Bournemouth, and Portsmouth in southern England.

CanWest owns 95% of the station while Seven Broadcast, operated by two U.K. radio consultants, holds the remaining 5%.

The company is not new to international expansion. In addition to its TV, radio, and newspaper holdings in Canada, CanWest has a stake in Network Ten TV in Australia, five radio networks in New Zealand, and in TV3, Ireland’s first commercial TV station. Its previous attempts to expand in the U.K. involved failed bids for a TV licence and radio licences in Belfast and Manchester. In a CanWest release, president/CEO Leonard Asper said the company was encouraged by the awarding of the licence and plans to ‘vigorously pursue our international expansion initiatives.’

Adding to the kitty, CanWest is going public with a chunk of its newspaper and interactive business. CanWest MediaWorks Income Fund would hold approximately 28% of the Canadian newspaper business. CanWest-owned The National Post will not be included in the IPO. The transfer should yield about $1.45 billion. That money plus $830 million the company will borrow will be used to buy the businesses of CanWest MediaWorks.