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The parent company behind Okanagan radio stations K96.3 and New Country 100.3 is changing.
Newfoundland Capital Corporation Limited (Newcap) announced on Thursday that it has reached an agreement to be purchased by Stingray Digital Group Inc.
Stingray acquires Newcap Radio owner Newfoundland Capital Corporation in a $506 Million transaction! That’s 101 radio licences across Canada!!https://t.co/fojn7ffnM3
— Tandemtracks Promo (@tandemtracks) May 3, 2018
Quebec-based Stingray will acquire all the issued and outstanding shares of Newcap.
The transaction is valued around $508 million, including the assumption of about $112 million in net debt.
“Today marks the start of an exciting chapter for (Newcap),” said Rob Steele, chairman, president and CEO of Newcap. “By joining forces with Stingray, we are of the view that the synergies will allow our business to move towards even greater success.”
Eric Boyko, president, co-founder and CEO of Stingray, said the purchase positions the company to be a “major player in the Canadian media landscape.”
“This transaction with (Newcap) comes after months of careful review,” he said. “I am excited to expand Stingray’s operations into radio broadcasting and bring on board some of Canada’s most popular on-air talent and an experienced sales force, which will help us grow our revenue streams.”
The transaction will be subject to the approval of 66% of the votes cast by Newcap shareholders at a special meeting in July.
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