SiriusXM Canada is going private, via a deal with U.S.-based SiriusXM Holdings Inc.—its biggest shareholder—and two of its top Canadian shareholders. The deal values Sirius XM Canada at about $367 million, according to Reuters.
Sirius XM Canada's shareholders will receive C$4.50 per share in cash or SiriusXM Holdings stock for each share they own, representing a premium of 6.4% to the stock's closing price on Thursday.
SiriusXM Holdings said it expects to pay about $275 million for the transaction, which will increase its stake in Sirius XM Canada to 70% from 37%, and give it ownership of 30% of its voting shares. Sirius XM Canada said the rest of its equity and voting stakes will be held by Canadian radio broadcaster Slaight Communications Inc. and Toronto-based private equity firm Obelysk Media.
The Canadian Broadcasting Corp, the national public radio and television broadcaster, will no longer be a shareholder in Sirius XM Canada, said Jim Meyer, CEO of SiriusXM Holdings. The CBC was Sirius XM Canada's second-biggest shareholder with a 12.5% stake of as of Dec. 9, according to Thomson Reuters data. It will continue to support the company as a programming provider.
"This proposed transaction shows SiriusXM's and Sirius XM Canada's commitment to serving the Canadian market with our leading bundle of premium content, much of which will continue to be created in Canada,” said Meyer. “The existing Canada-led governance structure will be preserved while vastly improving cooperation between the two companies on next generation products and services that will ensure a healthy future for satellite radio in Canada.”