Corus shareholders approve deal to buy Shaw media unit

A deal for Corus Entertainment to buy the media division of Shaw Communications has received shareholder approval.

Corus takes over Global TV network, HGTV and other media properties

Corus shareholders have backed its bid for Shaw Media, despite an activist attempt to stop the deal. (Aaron Vincent Elkaim/Canadian Press)

A deal for Corus Entertainment to buy the media division of Shaw Communications has received shareholder approval.

According to a statement from Corus, its class B shareholders voted 78.52 per cent in favour of the $2.65-billion acquisition.

The company says the results of Wednesday's vote still needs to be audited.

Catalyst Capital Group Inc.had attempted to block the vote, but failed to win support from Ontario's stock regulator.

The private equity firm had bought 0.4 per cent of Corus's class B shares after the deal was announced and urged Corus shareholders to reject the Shaw purchase.

Through the deal, Corus will acquire the Global Television network and 19 specialty channels including HGTV Canada, Food Network Canada and Showcase from Shaw Communications Ltd. 

Both Corus, which was spun off from Shaw in 1999, and Shaw Communications, are controlled by the Shaw family through their holdings of class A shares of both companies.

The Ontario Securities Commission ruled Monday that Catalyst had no legal standing to challenge the deal. Catalyst had called on Corus to renegotiate the sale, arguing it overpaid for the assets.

Broadcasting is an uncertain sector at the moment, as revenues slide and there is uncertainty over how to the change to pick-and-pay options will be received by consumers.