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Broadcasting Decision CRTC 2005-17
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Ottawa, 21 January 2005
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Astral Media inc., on behalf of Astral Media Radio inc.
Lévis, Quebec
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Application 2003-0211-7
Public Hearing in the National Capital Region
7 September 2004
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Acquisition of assets - Intracorporate reorganization
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The Commission approves the application by Astral Media inc., on behalf of Astral Media Radio inc., to acquire the assets of the radio programming undertaking CFOM-FM Lévis.
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The application
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1.
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The Commission received an application by Astral Media inc., on behalf of Astral Media Radio inc. (Astral Media Radio), to acquire, as part of an intracorporate reorganization, the assets of the radio programming undertaking CFOM-FM Lévis from Entreprises Radio Etchemin inc. (Radio Etchemin). The applicant also requested a broadcasting licence to continue the operation of the undertaking.
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2.
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The applicant proposed to assume responsibility for all outstanding tangible benefits relating to the transaction approved in Transfer of control of Entreprises Radio Etchemin inc. to Groupe Radio Astral inc., Decision CRTC 2001-95, 21 February 2001 (Decision 2001-95).
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3.
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CFOM-FM is currently operated by Radio Etchemin. Mr. Paul-Émile Beaulne acts as trustee of Radio Etchemin under a voting trust agreement approved by the Commission on 25 October 2002. Mr. Beaulne exercises voting rights attached to Radio Etchemin shares.
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4.
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The Commission received one intervention in support of the application.
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The Commission's determination
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5.
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The Commission notes that this application follows an intracorporate reorganization within the Astral group, approved in Intracorporate reorganization within the Astral group, Broadcasting Decision CRTC 2003-138, 2 May 2003. The Commission indicated in that decision that the step in the reorganization involving the transfer of CFOM-FM assets would be addressed at a subsequent public hearing.
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6.
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At the 7 September 2004 Public Hearing, the Commission examined this application as well as applications submitted by Astral Media Radio and 591991 B.C. Ltd., a wholly owned subsidiary of Corus Entertainment Inc. (Corus), for authority to acquire several radio undertakings in Quebec as part of an exchange of assets (the Astral/Corus transaction). The Astral/Corus transaction also involves the acquisition of CFOM-FM's assets by Corus. The Commission has approved the Astral/Corus transaction in Exchange of radio assets in Quebec between Astral Media Radio inc. and a subsidiary of Corus Entertainment Inc., Broadcasting Decision CRTC 2005-15 (Decision 2005-15), issued today.
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7.
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This approval is subject to written confirmation by Astral Media Radio and Corus, within 30 days of the date of Decision 2005-15, that they will complete the transaction in accordance with the terms and conditions set out in that decision. Failure to provide such confirmation within the required timeframe will render the decision null and void, and accordingly, Astral Media Radio will not be able to acquire the assets of CFOM-FM.
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8.
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In the event that the parties complete the transaction, the assets of CFOM-FM would be transferred from Radio Etchemin to Astral Media Radio, and subsequently transferred to Corus under the transaction approved in Decision 2005-15.
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9.
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In light of the above, the Commission approves the application by Astral Media inc., on behalf of Astral Media Radio inc., to acquire, as part of an intracorporate reorganization, the assets of the radio programming undertaking CFOM-FM Lévis from Radio Etchemin Inc.
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10.
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This approval is subject to written confirmation by Astral Media Radio and Corus, within 30 days of the date of this decision, that they will complete the Astral/Corus transaction in accordance with the terms and conditions set out in Decision 2005-15. Failure to provide such confirmation within the required timeframe will render this decision null and void.
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11.
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Finally, the Commission notes the applicant's proposal to assume responsibility for all outstanding tangible benefits relating to the transaction approved in Decision 2001-95, and expects the applicant to adhere to its commitments in that respect.
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Issuance of the licence
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12.
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The Commission will issue a licence to Astral Media Radio for the remainder of the term of CFOM-FM's licence, which expires on 31 August 2006, upon surrender of the current licence to the Commission. The licence will be subject to the same terms and conditions as those in effect under the current licence, as set out in CFOM-FM Lévis - Licence renewal, Broadcasting Decision CRTC 2002-368, 14 November 2002.
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Employment equity
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13.
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Because this licensee is subject to the Employment Equity Act and files reports concerning employment equity with theDepartment of Human Resources and Skills Development, its employment equity practices are not examined by the Commission.
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Secretary General
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This decision is to be appended to the licence. It is available in alternative format upon request, and may also be examined at the following Internet site: www.crtc.gc.ca
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Date Modified: 2005-01-21