Shaw Communications (SJR, SJR.b on TSE) announced a U$100 million investment in 360networks. Buying Shaw is an opportunity to invest in 360networks at the offering price in what is expected to be Canada's hottest IPO since 724 Solutions (SVNX, SVN on TSE). SVNX has been this year's best-performing IPO (so far).
Shaw's investment appears to give it an interest in 360networks comparable to what Greg Maffei, the network company's CEO, acquired in December, just before leaving Microsoft Corp., where he was CFO. If Maffei becomes yet another IPO billionaire next month, then Shaw's investment will be a ten-bagger.
Shaw's other successful investments include:
1) 3.35 million shares and warrants of Terayon Communication Systems Inc. (TERN) bought for only U$13.50. TERN is currently trading at around U$200!
2) 3.8 million shares and warrants in @Home bought for only U$10.
3) 1.4 million shares of Netpliance (NPLI) bought for only U$10 each last month. NPLI markets "i-opener," a simple 10-inch flat screen attached to a keyboard that sells for U$99. Shaw plans to market i-opener in Canada. Shaw made a nice profit as NPLI's IPO last week went as high as U$26 1/8.
4) 3,962,460 Common Shares of Moffat Communications representing approximately 10.2% of the total outstanding.
5) 3,019,100 Subordinate Voting Shares of Cogeco Cable representing approximately 17.2% of the outstanding Subordinate Voting Shares of Cogeco Cable (9.1% of the equity of Cogeco Cable).
Jim Shaw, the head of Shaw Communications Inc. has known 360networks executive Cliff Lede for seven years. "They're pretty strong entrepreneurial guys," says Shaw. "They recognized consumer demand in the fibre business and made a move to get in. I think they do a wonderful job in expanding their expertise." |
