Report of Foreign Issuer (6-k)
June 14 2017 - 8:02AM
Edgar (US Regulatory)
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 6-K
REPORT OF
FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
June 14, 2017
Commission File Number: 001-14684
Shaw Communications Inc.
(Translation of registrants name into English)
Suite 900, 630 3rd Avenue S.W., Calgary, Alberta T2P 4L4 (403) 750-4500
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F ☐ Form 40-F ☒
Indicate by check mark if
the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is
submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
The information contained in this report on Form 6-K and any
exhibits hereto shall be deemed filed with the Securities and Exchange Commission (SEC) solely for purpose of being and hereby are incorporated by reference into and as part of the Registration Statement on Form F-10 (File
No. 333-209068), the Registration Statement on Form F-3 (File No. 333-215151) and the Registration Statement on Form S-8 (File No. 333-215148), each filed by the registrant under the Securities Act of 1933, as amended, and into each
prospectus outstanding thereunder.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
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Shaw Communications Inc.
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Date: June 14, 2017
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By: /s/ Vito Culmone
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Name: Vito Culmone
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Title: Executive Vice President and Chief Financial
Officer
Shaw Communications Inc.
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EXHIBIT INDEX
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Exhibit No.
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Description
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99
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SCIMaterialChangeReport
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2
FORM 51-102F3
MATERIAL CHANGE REPORT
1.
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Name and Address of Company
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Shaw Communications Inc.
630 3
rd
Avenue S.W., Suite 900
Calgary, Alberta T2P 4L4
2.
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Date of Material Change
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June 12, 2017
Three news releases were issued by Shaw Communications Inc. (
Shaw
) and disseminated through Marketwired on
June 13, 2017.
4.
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Summary of Material Change
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ViaWest Transaction
On June 12, 2017, Shaw entered into a share purchase agreement (
SPA
) with GI Partners portfolio company Peak 10
Holding Corporation (
Peak 10
) to sell 100% of its wholly owned subsidiary, ViaWest, Inc. (
ViaWest
) for approximately C$2.3 billion (US$1.675 billion).
Spectrum Transaction
On June 12, 2017, Shaw entered into a definitive agreement with Quebecor Media Inc. (
Quebecor
) to acquire 700
MHz and 2500 MHz wireless spectrum licences for $430 million.
5.
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Full Description of Material Change
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ViaWest Transaction
On June 12, 2017, Shaw entered into a SPA with Peak 10 to sell 100% of its wholly-owned subsidiary, ViaWest, Inc., for
approximately C$2.3 billion (US$1.675 billion) (the
ViaWest Transaction
).
ViaWest provides hybrid IT solutions
including colocation, cloud computing and security and compliance for North American enterprises.
Shaw will continue to partner
with the new entity to leverage its combined expertise and scale to provide our Western Canadian data centre customers with greater innovation and breadth of services, which is consistent with the its best-in-class partner-led approach.
Fairness Opinion
As exclusive financial advisor to Shaw, TD Securities Inc. (
TD Securities
) provided an opinion to the Board of
Directors of Shaw that, subject to the assumptions, qualifications and limitations provided therein, the consideration to be received by Shaw pursuant to the Transaction is fair to Shaw, from a financial point of view.
- 2 -
ViaWest Transaction Details
The purchase price of approximately C$2.3 billion (US$1.675 billion), represents an attractive return on Shaws original investment
of US$1.2 billion, or approximately C$1.3 billion at the prevailing exchange rate at the time. Consideration pursuant to the ViaWest Transaction is comprised of all cash.
Shaw expects to realize net cash proceeds from the ViaWest Transaction of approximately C$900 million after the repayment of ViaWest
level indebtedness of approximately US$580 million, repayment of the US$380 million Shaw credit facility borrowings associated with the original investment and subsequent INetU acquisition, and estimated ViaWest Transaction expenses and taxes.
The ViaWest Transaction is subject to customary conditions, including U.S. regulatory approval and is expected to close by the end of
fiscal 2017.
1
The ViaWest Transaction is not subject to a financing condition.
Spectrum Transaction
On June 12, 2017, Shaw entered into a definitive agreement with Quebecor to acquire 700 MHz and 2500 MHz wireless spectrum licences
for $430 million (the
Spectrum Transaction
).
The spectrum licences being acquired comprise the 10 MHz licences
of 700 MHz spectrum in each of British Columbia, Alberta, and Southern Ontario, as well as the 20 MHz licences of 2500 MHz spectrum in each of Vancouver, Edmonton, Calgary, and Toronto.
The Spectrum Transaction is subject to customary closing conditions and all necessary regulatory approvals from the Ministry of
Innovation, Science and Economic Development Canada (
ISED
) and under the Competition Act. The Spectrum Transaction has received all required internal approvals at Shaw and Quebecor and is not subject to further approval by the shareholders of
Shaw or Quebecor.
The Spectrum Transaction will be funded using a combination of cash proceeds from the ViaWest Transaction, cash
on hand and/or Shaws existing credit facility and is expected to close in the summer of 2017.
In addition to the spectrum
acquisition cost, capital expenditures associated with the deployment of the acquired spectrum are estimated to be approximately $350 million. The Company expects the majority of the capital related to the network build to be incurred during fiscal
2018
1
, which reinforces Shaws commitment to the wireless space and improves our long-term wireless growth prospects.
Additional Details
Shaws pro forma net debt to EBITDA
2
leverage metric, assuming closing of both
the ViaWest Transaction and the Spectrum Transaction, is expected to be below the low end of our target 2.0x-2.5x and our $1.5 billion credit facility will be fully undrawn.
1
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Shaw has an August fiscal year-end
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2
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EBITDA does not have a standard definition prescribed by IFRS and therefore may not be comparable to similar
measures disclosed by other companies. EBITDA is equivalent to Operating income before restructuring costs and amortization which is often used in the Shaws disclosure and is defined as revenue less operating, general and
administrative expenses. For discussion on this measure, see 2016 Annual Report under Key Performance Drivers.
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- 3 -
Caution Regarding Forward-Looking Statements
Statements included in this material change report that are not historic constitute forward looking statements within the meaning of
applicable securities laws. Such statements include, but are not limited to: statements relating to the sale of ViaWest and the net cash proceeds (and repayment of ViaWest level debt) therefrom, the acquisition of the spectrum licenses from Quebecor
and the capital expenditures associated with the deployment of the acquired spectrum, the impact of the transactions on Shaw and its stakeholders, including wireless customers, and Shaws pro forma leverage metric. These statements are based on
assumptions made by Shaw that it believes are appropriate and reasonable in the circumstances, including without limit, that: regulatory approvals will be received and the other conditions to closing of the transactions will be satisfied; expected
business and financial results for Shaw and its wireless business will be realized; there is no significant market disruption or other significant changes in economic conditions, competition or regulation; the successful deployment of LTE Advanced
network, other growth plans and the converged network solution in a timely and cost effective manner to yield the results expected for Shaw and its wireless business; and the acquired spectrum will provide expected benefits to Shaw and the service
offering for its customers. There is the risk that one or more of these assumptions will not prove to be accurate and this may affect closing of the transaction and/or the business, operational and financial expectations for Shaw. Undue reliance
should not be placed on any forward-looking statement. Except as required by law, Shaw disclaims any obligation to update any forward-looking statement.
6.
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Reliance of Subsection 7.1(2) of National Instrument 51-102
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Not Applicable
None
Vito Culmone
Executive Vice President, Chief Financial Officer
(403) 750-4500
June 14, 2017
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