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Decision
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Ottawa, 27 July 1990
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Decision CRTC 90-684
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Monarch Broadcasting Limited
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Edmonton, Alberta - 900117300
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Pursuant to Public Notice CRTC 1990-54 dated 16 May 1990, the Commission approves the application by Monarch Broadcasting Limited (Monarch) for authority to acquire all issued and outstanding shares of CHQT Broadcasting Limited (CHQT Broadcasting), licensee of CHQT Edmonton, from A.M. Shoults.
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Monarch Broadcasting is the licensee of television stations in Alberta and Saskatchewan 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, Mr. Yuill will indirectly acquire control of CHQT Broadcasting.
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The purchase price for the shares is $7,000,000. Based on the evidence filed with the application, the Commission has no concerns with respect to the availability or the adequacy of the required financing.
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The Commission has assessed the various projects and initiatives put forward by Monarch Broadcasting as being benefits associated with the application. 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 undertaking concerned, and the scale of the programming, management, financial and technical resources available to Monarch Broadcasting. Moreover, the Commission considers that approval of this application is in the public interest.
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However, the Commission has rejected, as benefits in this transaction, the applicant's commitment of $19,500, over a five year period, to provide office space for the Edmonton Youth Orchestra as well as $145,000 over the same period for operational expenses related to the Monarch News Bureau. 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.
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The Commission nevertheless expects Monarch Broadcasting to ensure that the $801,500 in proposed expenditures included in the benefits package are made in accordance with the schedule outlined in the application.
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The Commission acknowledges six interventions in support of this application.
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Alain-F. Desfossés
Secretary General
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