GT Group Acquisition

In late December of 1999 GT Group Telecom Inc. announced that it was buying Shaw FibreLink, the telecommunications business of Shaw Communications Inc., for $760 million. Group Telecom will pay Shaw $360 million in cash and Shaw will acquire a 28.5% interest in the combined entity. The merged company will create a powerful competitor in Canada’s telephone market with a fibre optic network covering seven provinces carrying local, long distance, and internet traffic. The transaction contemplates construction of approximately 100,000 fibre kilometres over the next five years. Associated with the transaction is $1.03 billion in financing. The scheduled date of closing for the transaction is March 31, 2000.

The GT Group general counsel directing the transaction is Robert Fabes. Representing GT Group is Goodman Phillips & Vineberg. Out of Vancouver the GPV team consists of Paul Goldman, Bruce Wright, Doug Bolton, Jeffrey Fountain, and Shannon Rogers. Out of Toronto the GPV team consists of Michael Koch, Tracey Pearce, Geoffrey Morawetz, Jonathan Lampe, Susan Zimmerman (research), Robert Chadwick, and Peter Ruby. Out of Montreal the GPV team member is William Brock.

The Shaw communications general counsel directing the transaction is Margot Micallef. In Toronto Shaw is represented by Davies, Ward & Beck with the Davies’ team comprised of Jean-Paul Bisnaire, Vincent Mercier, Mitchell Finkelstein and Warren Katz. In Calgary, Shaw is represented by Fraser Milner with the team from that firm being comprised of David A. Spencer and William K. Jenkins.

Goldman Sachs is acting as advisors to Group Telecom with Osler, Hoskin & Harcourt LLP acting as counsel. The Oslers team is comprised of Deborah M. Alexander, Camilla A. MacKenzie, and D. Robert Beaumont out of the firm’s Toronto office. Regulatory counsel out of the firm’s Ottawa office include Kristen R. Embree, M. Lynn Starchuck and Monica Song. RBC Dominion is acting as advisors to Shaw.