ARCHIVED - Decision CRTC 94-926
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Decision |
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| Ottawa, 19 December 1994 | |
| Decision CRTC 94-926 | |
| Maritime Broadcasting System Limited | |
| Amherst, Halifax, Nova Scotia; Campbellton, Moncton, Newcastle, Saint John, Sussex, New Brunswick; and Charlottetown, Prince Edward Island - 940477300 - 940482300- 940483100 - 940478100 - 940485600 - 940486400 - 940487200 - 940488000 - 940489800- 940479900 - 940480700 | |
Transfer of control |
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| Following a Public Hearing in the National Capital Region beginning on 20 September 1994, the Commission approves the applications for authority to transfer effective control of Maritime Broadcasting System Limited (Maritime), licensee of CKDH Amherst, CHFX-FM and CHNS/CHNX Halifax, Nova Scotia; CKNB Campbellton, CKCW and CFQM-FM Moncton, CFAN Newcastle, CIOK-FM Saint John, and CJCW Sussex, New Brunswick; and CFCY and CHLQ-FM Charlottetown, Prince Edward Island, through the transfer of all the issued and outstanding Class M common shares and Class S common shares of Maritime from Key Radio Limited to 2337017 Nova Scotia Limited. This transaction also comprises all or part of the remaining minority shares which Key Radio Limited may have acquired prior to the closing date of the transaction. | |
| The purchase price for the shares is $16,000,000. 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. | |
| Because the Commission does not solicit competing applications for authority to transfer effective control of broadcasting undertakings, 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. As a first test, the applicant must demonstrate that the proposed transfer will yield significant and unequivocal benefits to the community served by the broadcasting undertaking and to the Canadian broadcasting system as a whole, and that it is in the public interest. | |
| The Commission has assessed the benefits package identified by the applicant as flowing from this transaction and, in general, is satisfied that it is significant and unequivocal, and that approval of these applications is in the public interest. | |
| As a part of these applications, the applicant proposed tangible benefits totalling $2,015,000, including $1,280,000 in direct expenditures. The Commission's assessment of the proposed benefits package has, however, increased the tangible benefits total to $2,293,900, made up of $1,440,000 in direct expenditures and the remainder as indirect. The increased benefits package reflects the costs associated with the continuation of the "Startrack" program, beyond the current licence terms of several of the undertakings involved in this transaction. | |
| The Commission expects the applicant to ensure that all of the $2,293,900 in proposed expenditures included in the benefits package (as amended above) are made in accordance with the schedule outlined in the applications. | |
| The Commission reaffirms the particular importance it attaches to the development of Canadian talent and notes that the applicant is proposing to continue the stations' existing commitments in this regard. Furthermore, the quantifiable benefits proposed by the applicant as part of the transaction, qualify as Canadian talent development and will be contributed in addition to the station's existing commitments. The Commission encourages the applicant, during the licence term, to continue its efforts towards the support, development and on-air exposure of local and regional talent. | |
| In Public Notice CRTC 1992-59, the Commission announced implementation of its employment equity policy. It advised licensees that, at the time of licence renewal or upon considering applications for authority to transfer ownership or control, it would review with applicants their practices and plans to ensure equitable employment. In keeping with the Commission's policy, it encourages the applicant to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources. | |
| The Commission acknowledges all of the interventions submitted related to these applications, and has noted the supporting interventions as well as the applicant's responses to concerns expressed in some interventions. | |
|
Allan J. Darling Secretary General |
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