Shaw to bolster Freedom Mobile with spectrum deal, sell ViaWest for $2.3 billion

CALGARY – Shaw Communications Inc. (TSX:SJR.B) is moving to strengthen its Freedom Mobile wireless business through a deal with Quebecor that will be largely funded by selling its U.S.-based ViaWest unit for C$2.3 billion.

The Calgary-based company says money from the ViaWest sale will help pay for C$430 million worth of spectrum licences in British Columbia, Alberta, and southern Ontario that it plans to buy from Quebecor (TSX:QBR.B) — subject to federal approvals.

Shaw became Canada’s fourth-largest wireless network operator with last year’s purchase of Wind Mobile.

In addition to the spectrum licences, Shaw plans $350 million in capital spending for the wireless business, now called Freedom Mobile.

Shaw acquired ViaWest, a Denver-based computer centre operator, for US$1.2 billion in 2014. The company expects to net about C$900 million on the sale after repayment of debt.

ViaWest is being sold to Peak 10 Holding Corp., a portfolio company managed by GI Partners.