March 07, 2016 - 3:02 PM
TORONTO - The Ontario Securities Commission ruled Monday that a minority shareholder in Corus Entertainment does not have the legal standing to challenge information the Calgary-based firm disclosed about its proposed $2.65-billion acquisition of Shaw Media.
The regulator's decision means a shareholder vote on the deal will go ahead as planned on Wednesday.
Catalyst Capital Group, which has been staunchly critical of the Corus-Shaw deal, had wanted the vote to be postponed in order to allow enough time for a review.
In a brief statement, Corus said it welcomed the OSC's decision.
Catalyst did not immediately respond to a request for comment.
Corus signed an agreement in January to buy the media division of Shaw Communications (TSX:SJR.B), which would add the Global Television network and 19 specialty channels to its portfolio.
Both Corus (TSX:CJR.B), which was spun off from Shaw in 1999, and Shaw Communications , are controlled by the Shaw family.
In order to go ahead, the deal needs approval by a majority of Corus shareholders, excluding the Shaw family.
Last month, Catalyst called on Corus to renegotiate the Shaw deal, arguing it is overpaying for the assets.
To reduce the price being paid, Catalyst suggested issuing fewer shares or paying a special dividend to existing shareholders.
Catalyst also called for changes to the financing arrangement related to the sale and an evaluation of a potential sale of Corus itself.
News from © The Canadian Press, 2016