Friday, February 12, 2016

SiriusXM-Canada Planning To Go Private

Owners of SiriusXM-Canada (XSR.TO) are planning to take the company private in a deal that would value the satellite radio provider at close to $750 million, according to a source familiar with the proposed transaction, the Globe & Mail reported.

The deal could see American company Sirius XM Holdings (SIRI), which operates the U.S. arm of North America’s dominant satellite radio brand and owns roughly 32% of the Canadian company, join forces with Canadian owners to buy out the more than 30% of 105 million outstanding shares that are publicly held.

The buyout price would be $4.25 a share in cash, and the valuation would include about $192 million in debt, the report said. Sirius XM refused to comment. Sirius XM Canada has about 2.7 million users in Canada and has been growing steadily, adding 14,000 paying subscribers in its last quarter, despite competition from online streaming alternatives.

But. according to,  its stock price has fallen about 40% over the past year, to $3.68 at Thursday’s close on the Toronto Stock Exchange.

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