TORONTO — Corus Entertainment Inc. shares slipped 4 cents to $6.66 CDN on the TSX in Thursday’s trading one day after the exchange halted trading amid a steep sell-off in shares for the company that owns 39 radio stations, the Global broadcast TV network, and a collection of cable TV offerings.
The sharp decline in value for Corus is the result of a Tuesday agreement that sees Shaw Communications sell its 80.63 million-share stake in the company at $6.80 per share.
The problem for investors: Corus closed at $8.07 on May 14.
Twenty-four hours later, Corus was at $6.65.
Some $548.29 million CDN was generated from the share sale, but none of the proceeds are going to Corus. They went to TD Securities Inc., which is selling the entire stake to smaller investors, Financial Post reports.
Where does this leave Corus? In a statement, CEO Doug Murphy said, “We have always anticipated the eventual sale of these shares at such time as determined by Shaw Communications. Our business operations remain unchanged as a result of this transaction, and we look forward to continuing to execute our strategy as we evolve and grow our business to create value for all of our stakeholders.”
Corus began life in 1999 as a spin-off of Shaw. This allowed Shaw to focus on its MVPD business.
— Carina Newton contributed to this story from Toronto