|
Decision
|
|
Ottawa, 11 October 1990
|
|
Decision CRTC 90-1059
|
|
Radio Station CKPG Limited
|
|
Prince George and Mackenzie, British Columbia - 900251000 - 900252800 - 900254400 - 900253600
|
|
Following a Public Hearing in Edmonton beginning on 15 May 1990, the Commission approves the applications for authority to transfer effective control of Radio Station CKPG Limited (Radio CKPG), licensee of CKPG, CIOI-FM Prince George and CKMK Mackenzie and related rebroadcasters, as well as Radio CKPG's subsidiary CKPG Television Limited, licensee of CKPG-TV Prince George and its rebroadcasters at Hixon, Mackenzie and Quesnel, British Columbia, through the transfer of all of the issued and outstanding common voting shares from Q Broadcasting Ltd. (99.99%) and J.E. Stark in trust for Q Broadcasting Ltd. (0.1%) to Monarch Broadcasting Ltd. (Monarch Broadcasting).
|
|
Monarch Broadcasting is the licensee of television stations in Alberta as well as radio stations in Alberta and British Columbia. It is a wholly-owned subsidiary of Monarch Communications Inc., which is a holding company owned and controlled by W.H. Yuill. As a result of this transaction, Monarch Broadcasting will acquire effective control of Radio CKPG and its subsidiary CKPG Television Limited.
|
|
As stated in a number of decisions relating to applications for authority to transfer ownership or effective control of broadcasting undertakings, and because the Commission does not solicit such applications and because there is, thus, only one proposal presented to the Commission, the onus is on the applicant to demonstrate to the Commission that the application filed is the best possible proposal under the circumstances, taking into account the Commission's general concerns with respect to transactions of this nature.
|
|
The purchase price for the shares is $11,900,000. Based on the evidence filed with the applications, the Commission has no concerns with respect to the availability or the adequacy of the required financing.
|
The Commission has assessed the various projects and initiatives put forward by Monarch Broadcasting as being benefits associated with the applications. In general, the Commission is satisfied that the benefits package is clear and unequivocal, commensurate with the size and nature of the transaction involved, and takes into account the responsibilities to be assumed by the purchaser, the characteristics and viability of the broadcasting undertakings concerned, and the scale of the programming, management, financial and technical resources available to Monarch Broadcasting. Moreover, the Commission considers that approval of these applications is in the public interest. However, the Commission has rejected as benefits in this transaction, Monarch Broadcasting's commitments of $162,400 over five years for a full-time newsperson at CIOI-FM as well as $42,000 to expand and upgrade CHMK's technical plant and $29,000 to automate the music systems of CKPG and CIOI-FM ($14,500 respectively). The Commission considers that these proposals fall within the categories of proposed benefits that have been generally rejected by the Commission, for reasons outlined in Public Notice CRTC 1989-109 dated 28 September 1989.
|
|
Nevertheless, the Commission expects Monarch Broadcasting to ensure that the $1,410,000 in proposed expenditures included in the benefits package are made in accordance with the schedule outlined in the applications.
|
|
The Commission acknowledges the 39 interventions which it received in support of these applications.
|
|
Alain-F. Desfossés
Secretary General
|
|
|
|
|