The parent company of Canadian number-one operator Rogers Wireless has reached an agreement to acquire AWS spectrum licences and cable company Mountain Cablevision from Shaw Communications.
Rogers Communications has initially agreed to pay CAD50 million ($50.8 million) for the option to buy spectrum licences covering British Columbia, Alberta, Saskatchewan, Manitoba and Northern Ontario.
The final price for the option to acquire the spectrum licences will be negotiated over the coming months with the provision of services, assets and rights by Shaw to Rogers to be decided.
The purchase price for Mountain Cablevision is CAD400 million, with CAD250 million an up-front deposit which was paid yesterday.
Shaw will also acquire a 33.3 percent partnership interest in the TVtropolis television channel from Rogers for CAD59 million as part of the deal.
The agreements are all still subject to conditions and regulatory approval. The spectrum option will be exercised once it has been approved by the Industry Canada and Competition Bureau and before the licences expire in March 2015.