ARCHIVED - Decision CRTC 2001-95

Decision CRTC 2001-95

Ottawa, 21 February 2001

Éric Coulombe
Entreprises Radio Etchemin inc.
5637 boul. De la Rive Sud
Lévis, Quebec
G6V 4Y5

Dear Mr. Coulombe,

Subject: Application 200023292 - Approved
Transfer of control of Entreprises Radio Etchemin inc. to Groupe Radio Astral inc.

This is to inform you that the Commission has approved the above-mentioned application for authorization for a multi-step transaction to transfer all outstanding shares of Entreprises Radio Etchemin inc. ("Radio Etchemin"), licensee of CFOM-FM Lévis, Quebec, to Groupe Radio Astral inc. ("Groupe Astral").

The Commission notes that, following this transaction, effective control of Radio Etchemin will be exercised by Groupe Astral, a company ultimately controlled by Les Placements Abgreen ltée ("Placements Abgreen"), which holds 55% of the voting shares of Groupe Astral. Placements Abgreen is controlled by the Greenberg family.

The Commission notes the applicant's commitment with respect to the payment of tangible benefits equivalent to 6% of the value of the transaction, which totals $9 million, consistent with the policy set out in Public Notice CRTC 1998-41. The Commission expects the financial contributions, which will be spread over a five-year period, to be distributed as follows:

$270,000 (3% of the value of the transaction) to Fonds RadioStar;

$180,000 (2% of the value of the transaction) to MusicAction; and

$90,000 (1% of the value of the transaction) to various local organizations including the Fondation du CÉGEP de Lévis-Lauzon, which will award scholarships to students registered in the CÉGEP's performing arts program ($5,000 per year); the Lévis youth symphony to organize local concerts ($5,000 per year); and the Festival d'été de Québec, in the form of an annual $8,000 scholarship to promote new Canadian Francophone talent.

The Commission also notes the applicant's commitment to maintain a clearly identified service office in Lévis with all the equipment required for CFOM-FM journalists to cover the south shore section of greater Quebec City.

All approval letters issued by the Commission are available for public examination at the Commission's head office and the regional office in Montréal. The Commission requires you to append this letter to all your licences. The Commission will amend its records to reflect the change indicated in the attachment. The Commission expects the applicant to submit a true copy of the purchase agreement as soon as it is finalized.

Yours truly,

Ursula Menke
Secretary General

c.c.: Michel Arpin
Jacques Parisien
Groupe Radio Astral inc.

Encl.

ENTREPRISES RADIO ETCHEMIN INC.

Date Modified: 2001-02-21