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Decision
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Ottawa, 19 September 1990
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Decision CRTC 90-913
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Celtic Investments Limited
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Sydney, Nova Scotia - 900544800 - 900545500
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Pursuant to Public Notice CRTC 1990-70 dated 25 July 1990, the Commission approves the applications for authority to transfer effective control of Celtic Investments Limited (Celtic), licensee of CJCB and CKPE-FM Sydney, through the transfer of all common voting shares of the licensee from JMN Holdings Limited (J. Marven Nathanson) (50%) and NLN Holdings Limited (Norris L. Nathanson) (50%) to Fundy II Ltd. (Fundy II). As a result of this transaction, Fundy II will directly control Celtic.
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Fundy II, which is controlled by William C. Stanley, is licensee of CFBC and CJYC-FM Saint John as well as a cable undertaking serving St. Stephen, New Brunswick.
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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.
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The purchase price for the shares is $5,750,000. 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.
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The Commission has assessed the various projects and initiatives put forward by Fundy II 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 undertaking concerned, and the scale of the programming, management, financial and technical resources available to Fundy II. Moreover, the Commission considers that approval of these applications is in the public interest.
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However, the Commission has rejected as a benefit in this transaction Fundy II's commitment of $150,000 for the relocation of the antenna site and construction of a new tower to extend service. Nevertheless, the Commission expects Fundy II to ensure that the $595,640 in proposed expenditures included in the benefits package are made in accordance with the schedule outlined in the applications.
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Alain-F. Desfossés
Secretary General
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