Shaw sells data centre business, signs Quebecor spectrum deal

Shaw Communications Inc. doubled down on its strategy to become a serious contender in Canada’s wireless market with a pair of deals aimed at improving its relatively sluggish mobile network.

The Calgary-based communications giant announced Tuesday morning it sold its data centre business and inked a deal with Quebecor Inc. to use some of the proceeds to buy low-band spectrum licences, the 700 MHz and 2500 MHz radio frequencies essential for better network quality and coverage.

It sold ViaWest to GI Partners portfolio company Peak 10 Holding Corp. for $2.3 billion, netting about $900 million in cash proceeds after purchasing the assets for $1.3 billion less than three years ago. The transaction is expected to close by the end of August.

Simultaneously, Shaw announced a $430-million deal with Quebecor for spectrum in Alberta, British Columbia and Ontario. It expects to spend an additional $350 million to deploy the added spectrum in its next fiscal year, which begins Sept. 1.

The spectrum transfer is subject to approval from the Ministry of Innovation, Science and Economic Development and the Competition Bureau, but Shaw said it expects the deal to close this summer.

CEO Brad Shaw called the transactions an “important milestone” and expects the 700 MHz spectrum will “materially improve our long-term wireless customer experience.”

“We are pleased that we have entered into an agreement with Quebecor, and we are excited about putting this spectrum to use for the benefit of Canadians,” Shaw said in a statement.