St­ingray Mu­sic signs agree­ment to pur­chase NewCap

The Drumheller Mail - - THE DRUMHELLER MAIL - Pa­trick Ko­lafa

It looks as though Drumheller’s lo­cal coun­try mu­sic ra­dio sta­tion will soon have new own­er­ship.

In May of this year New­found­land Cap­i­tal Cor­po­ra­tion (NCC), the owner of NewCap Ra­dio signed an agree­ment with St­ingray Dig­i­tal Group, un­der which St­ingray will ac­quire all the is­sued and out­stand­ing shares of the com­pany. This is val­ued at about $506 mil­lion, in­clud­ing the as­sump­tion of its net debt of about $112 mil­lion.

NewCap owns 910 CFCW in Drumheller.

“To­day marks the start of an ex­cit­ing chap­ter for NCC,” said Rob Steele, Chair­man, Pres­i­dent and Chief Ex­ec­u­tive Of­fi­cer of NCC. “By join­ing forces with St­ingray, we are of the view that the syn­er­gies will al­low our busi­ness to move to­wards even greater suc­cess. To­gether, we have be­gun to build a solid foun­da­tion for Canada’s next great me­dia group. We ex­pect our com­bined com­pany will stand out in to­day’s fiercely com­pet­i­tive mar­ket for its world-class tal­ent and com­ple­men­tary ser­vice of­fer­ing. On be­half of NCC’s man­age­ment and Board of Di­rec­tors, I am thrilled NCC is join­ing the St­ingray fam­ily.”

St­ingray is an in­de­pen­dent Cana­dian com­pany that of­fers mul­ti­plat­form au­dio ser­vices. Ac­cord­ing to a news re­lease from St­ingray, this trans­ac­tion marks the com­pany’s en­try into the broad­cast ra­dio mar­ket. Newcap op­er­ates 72 lo­cal ra­dio sta­tions and 29 re­peat­ing sta­tions in seven prov­inces. It employs about 800.

“It rep­re­sents a con­sid­er­able mile­stone for St­ingray — po­si­tion­ing us as Canada’s largest pub­lic in­de­pen­dent me­dia com­pany — and a valu­able op­por­tu­nity for our stake­hold­ers,” said Eric Boyko, Pres­i­dent, Co-founder, and CEO of St­ingray. “We have found in NCC an es­tab­lished and trusted part­ner with a proven track record of de­liv­er­ing re­sults in niche mar­kets across the coun­try. 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. I look for­ward to wel­com­ing the NCC team to the St­ingray fam­ily and col­lab­o­rat­ing with the cur­rent man­age­ment in place.”

On June 27, share­hold­ers of NCC ap­proved of the ar­range­ment.

Ac­cord­ing to a press re­lease, the trans­ac­tion re­mains sub­ject to fi­nal court ap­provals as well as ap­proval from the CRTC.

The trans­ac­tion is ex­pected to oc­cur by the end of this year.

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