Newcap Inc. and Rogers Broadcasting Limited have entered into an agreement to exchange radio stations subject to approval from the Canadian Radio-television and Telecommunications Commission.
Newcap will exchange its CFDR AM broadcast licence in Halifax, Nova Scotia and receive in return Rogers' CIGM AM licence in Sudbury, Ontario and cash consideration of $5 million.
"If approved by the CRTC, this transaction will improve service to the public with superior FM quality signals in both Halifax and Sudbury," said Newcap president and CEO Rob Steele, in a release.
"We have owned CFDR for over 20 years, and while we are reluctant to divest of this station, we are pleased to expand our portfolio with a second station in Sudbury, Ontario. Newcap Radio is committed to build on and enhance its presence in the communities we serve and we look forward to expanding in Sudbury."
"This is a wonderful opportunity for Rogers to expand our presence in the Halifax market", said Paul Ski, CEO of the company's radio division.
"We already operate News 95.7 and this new licence will complement this holding and will allow us to better serve our listeners in the market.
While we are disappointed to be selling CIGM in Sudbury, it is vitally important to both Rogers and Newcap to build upon our station clusters. We know that Newcap will continue and build upon the proud traditions of CIGM."