MONTREAL, QUEBEC--Quebecor Inc. announced that it has reached an agreement with a consortium consisting of Cogeco Inc. and Bell Globemedia Inc. to sell its interest in TQS inc. Closing of the deal is subject to certain conditions, including regulatory approval and the signing of a final agreement.
The selling price establishes the value of TQS at $72 million. Since, at the time of the transaction, Quebecor Inc. held 86.02% of the shares of TQS, it will realize proceeds of $62 million on the sale. In addition, advances in the amount of $12 million made by Quebecor Inc. to TQS in the past will be repaid. Quebecor Inc. will therefore receive a total of $74 million under the transaction.
"We are proud to have been part of the recovery at TQS,'' said Pierre Karl Peladeau, President and Chief Executive Officer of Quebecor. "Under Quebecor management, TQSreached the break-even point for the first time in its history.''
This transaction and the placing of TQS under trusteeship today should satisfy the suspensive condition contained in the CRTC decision on the transfer of ownership of the TVA Group to Quebecor Media Inc.
"As soon as the CRTC confirms that the suspensive condition has been lifted, Quebecor Media Inc. will officially incorporate the TVA network into its portfolio of assets, adding the force of the largest French-language broadcaster in the Americas to its family of properties,'' commented Mr. Peladeau.
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