ARCHIVED - Decision CRTC 2000-765
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Decision CRTC 2000-765 |
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Ottawa, 21 December 2000 |
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Jim Pattison Industries Ltd. |
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Jim Pattison Industries Ltd., on behalf of CKPG Television Limited |
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Jim Pattison Industries Ltd., on behalf of Radio Station CKPG Limited |
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Jim Pattison Industries Ltd., on behalf of Medicine Hat Broadcasting Ltd. |
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Jim Pattison Industries Ltd., on behalf of Columbia Kootenay Broadcasting Co. Ltd. |
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20 November 2000 Public Hearing |
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Acquisition by Jim Pattison Industries Ltd. of all of Monarch Broadcasting Ltd.'s television and radio interests |
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The Commission approves the applications for authority to acquire from Monarch Broadcasting Ltd. the assets of television programming undertaking CHAT-TV Medicine Hat including its rebroadcasters CHAT-TV-1 Pivot, Alberta and CHAT-TV-2 Maple Creek, Saskatchewan, as well as the radio programming undertakings CHAT Medicine Hat, CJXX and CJXX-FM Grande Prairie, CHLB-FM Lethbridge, CHUB-FM Red Deer, and CHHK-FM Taber and for broadcasting licences to continue the operation of these undertakings. |
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Transfer of control of Monarch's subsidiary companies to Jim Pattison Industries Ltd. |
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The Commission also approves the applications for the authority to change the effective control of Monarch's subsidiary companies by Jim Pattison Industries Ltd. (Jim Pattison) acquiring: |
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· the remaining issued and outstanding shares of CKPG Television Limited, licensee of CKPG-TV Prince George, including its rebroadcasting transmitters, and the network; |
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· the remaining issued and outstanding shares of Radio Station CKPG Limited, licensee of CKPG and CKKN-FM Prince George including its rebroadcasting transmitters and CKMK MacKenzie; |
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· the remaining and outstanding shares of Medicine Hat Broadcasting Ltd., licensee of CFMY-FM Medicine Hat; and |
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· the remaining and outstanding shares held directly and indirectly by various shareholders in Columbia Kootenay Broadcasting Co. Ltd., licensee of CKEK and CKKR-FM Cranbrook and CFEK Fernie, including any rebroadcasting transmitters. |
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1. |
The purchase price for the assets and shares is $33,504,082. 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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Upon surrender of the current licences, the Commission will issue licences to Jim Pattison Industries Ltd. expiring on their current expiry dates: 31 August 2002 for CHAT-TV and its rebroadcasters, 31 August 2003 for CHAT, CJXX-FM, CHLB-FM, CHUB-FM and CHHK-FM. The licences will be subject to the conditions in effect under the current licences as well as to any other condition that may be specified in the licences to be issued. The conditions of licence for the radio stations are also set out in Public Notice CRTC 1999-137. |
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Benefits |
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3. |
Jim Pattison's benefits commitments are over and above the existing commitments and conditions of licence for all of the television and radio stations. |
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Television |
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4. |
Consistent with the requirements of the benefits policy outlined in Building on Success - A Policy Framework for Canadian Television (Public Notice CRTC 1999-97), Jim Pattison will spend $821,418.50 in tangible benefits in the television sector, or 10% of the purchase price for the assets of CHAT-TV and the shares of CKPG-TV. The licensee will direct this contribution to capital expenditures on the construction of a new communications centre at Surrey, British Columbia. The centre will be used to teach programming production skills to high school students and post-secondary, community-based groups. It will also produce multi-media programs focusing primarily on educational programs. |
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Radio |
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Consistent with the requirements of the benefits test outlined in Commercial Radio Policy, 1998 (Public Notice 1998-41), Jim Pattison will spend $1,311,313 over five years in tangible benefits in the radio sector. These benefits represent the required minimum direct financial contribution to Canadian talent development of 6% of the purchase price of the assets and shares of the radio stations. |
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· 3% ($655,656) to be allocated to the Canadian Music Marketing and Promotion Fund; |
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· 2% ($437,104) as a contribution to FACTOR; and |
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· 1% ($218,553) to additional capital expenditures for the new communications centre at Pacific Academy. |
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Other matters |
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6. |
The Commission notes that this licensee is subject to the Employment Equity Act that came into effect on 24 October 1996 and therefore files reports concerning employment equity with Human Resources Development Canada. |
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7. |
The Commission notes that no further action is required on application number 200018227. |
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Secretary General |
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- Date modified: