UPDATE 1-Sirius XM Canada to be taken private by SiriusXM, top Canadian holders

Fri May 13, 2016 7:37am EDT
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(Adds details on the deal)

May 13 (Reuters) - Sirius XM Canada Holdings Inc said on Friday that SiriusXM Holdings Inc, its biggest shareholder, along with two of its top Canadian shareholders will take the satellite radio service private.

The deal values Sirius XM Canada at about C$472 million ($367 million), based on Reuters calculations.

Sirius XM Canada's shareholders will receive C$4.50 per share in cash or SiriusXM Holdings stock for each share they own, representing a premium of 6.4 percent to the stock's closing price on Thursday.

SiriusXM Holdings said it expects to pay about $275 million for the transaction, which will increase its stake in Sirius XM Canada to 70 percent from 37 percent, and give it ownership of 30 percent of its voting shares.

Sirius XM Canada said the rest of its equity and voting stakes will be held by Slaight Communications Inc and Toronto-based private equity firm Obelysk Media.

Slaight, a Canadian radio broadcasting company, was Sirius XM Canada's third-biggest shareholder with a 10.2 percent stake of as of Dec. 9, according to Thomson Reuters data.

The Canadian Broadcasting Corp, the national public radio and television broadcaster, will cease to be a shareholder in Sirius XM Canada following the transaction, said Jim Meyer, chief executive of SiriusXM Holdings.

The CBC was Sirius XM Canada's second-biggest shareholder with a 12.5 percent stake of as of Dec. 9, according to Thomson Reuters data.   Continued...