Molsons agree to buy Canadiens

By Jeffrey Hodgson and Steve Keating
TORONTO (Reuters) - Geoff Molson and his brothers, Andrew and Justin, tentatively agreed to buy control of the National Hockey League's Montreal Canadiens on Saturday, returning the sport's most storied club to the Canadian brewing dynasty.
George Gillett, whose holdings include a part of English Premier League club Liverpool, would sell an 80.1 percent stake in the NHL franchise, Montreal's Bell Center and concert promoter Gillett Entertainment Group in the deal.
The agreement in principle to sell the Canadiens was confirmed by a statement on the team website, which did not disclose its value. A source with knowledge of the transaction, who declined to be identified because the deal has not closed, said it was valued at almost $575 million.
Other bidders pursuing the Canadiens, who have won a record 24 Stanley Cups, included media and telecom group Quebecor Inc.
"Our family has been very proud to be associated with the Montreal Canadiens over the past eight years," U.S. businessman Gillett said in the statement.
"I am fully confident that the Molson brothers, who have been a great part of the heritage of the club, will ensure the preservation and development of this great sports institution."
HOME TO LEGENDS
The Molson family has a long history with the Canadiens, having owned the team in its glory years from 1957 to 1971, when it won many championships. Maurice "Rocket" Richard, Jean Beliveau and Guy Lafleur are among the legends who wore the club's jersey.
Gillett bought his stake in the team and all of its arena in 2001. The remainder of the franchise is held by Molson Coors Brewing Co.
The agreement must be finalized by the parties and approved by the NHL's board of governors before it can be closed, which is expected to occur in late August, the statement said.
"This is a very exciting time for our family and we are grateful to the many people and organizations who came forward to offer their collaboration in the development of our proposal," Geoff Molson said, adding that he hoped the league's board would look favorably on the transaction.
The deal for the Canadiens comes after a U.S. bankruptcy judge this month rejected the proposed sale of bankrupt Phoenix Coyotes hockey team to Jim Balsillie, the co-CEO of BlackBerry maker Research in Motion.
The Canadian billionaire offered to buy the money-losing hockey team for $212.5 million in May when it filed for bankruptcy protection, on condition it relocate to Hamilton, Ontario, about an hour's drive southwest of Toronto.
(With additional reporting by Ben Klayman in Chicago; editing by Paul Simao)

Source: Reuters