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Quebec Investors Join Quebecor Media in Offer to Buy Montreal Canadiens

Thursday 11. June 2009 - Fonds de solidarite FTQ and Productions Feeling are on side

Quebecor Media has filed a formal offer to purchase the Montreal Canadiens hockey team and its properties tomorrow with BMO Financial Group, which is acting on behalf of the Gillett family, the owner of the team and its assets. The offer has been approved by the Caisse de depot et placement du Quebec, co-shareholder with Quebecor of Quebecor Media. The Fonds de solidarite FTQ and Productions Feeling, Rene Angelil’s management company, are supporting Quebecor Media’s offer and contributing their complementary range of expertise to the bid.

“The Montreal Canadiens hockey team is unquestionably one of the most prestigious and iconic sports franchises in the world,” said Pierre Karl Peladeau, President and Chief Executive Officer of Quebecor. “The team has been part and parcel of our history for a hundred years. We therefore regard this as a golden opportunity for a Quebec group to return this grand institution to local ownership. The stature, calibre and sense of enterprise of the business people and organizations supporting this project demonstrate that this is a serious offer and we are determined to reach an agreement with George Gillett and the National Hockey League.”

Closer to the fans

Though a century old, the Montreal Canadiens have successfully adapted their marketing and branding approach over the years. The team has developed a close and unique bond with the public. In the future, the challenge will be to continue drawing crowds to the arena while reaching fans wherever they may be via new media such as the Internet and mobile services. Like organizations in many other spheres where consumers have a growing array of available choices, the Canadiens are facing increasing competition for sports and entertainment dollars. The team’s future owner will therefore have to keep the relationship with the fans strong by adapting to new lifestyles. Increasingly, Quebecers expect to be able to follow events in real time and interactively wherever they are. This principle also applies to the Gillett Group’s other show business and entertainment operations, which have expanded considerably in recent years.

Quebecor Media believes it can move the organization forward in this respect and make the Canadiens still more accessible to the mass audience, in keeping with the public’s needs and expectations. Quebecor Media’s numerous subsidiaries have repeatedly demonstrated their ability to make concerted investments to offer all Quebecers, regardless of whether they are in Montreal or Saguenay, age 7 or 77, an adapted and optimal entertainment experience.

Following in the footsteps of other organizations that have introduced similar business models, including the Toronto Maple Leafs, Philadelphia Flyers and New York Rangers, Quebecor Media plans to bring all parties – fans, advertisers, producers, performers, technicians, etc. – the benefits of an approach that generates more wealth and creates more Quebec jobs.

http://www.quebecor.com
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