-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PkGAitioDmgo2+tVqSzNj38AoZ2QMjXMtAZfo7xpHPsLz7kWcbTgzqjj2xYWxlO5 SreusUgOThtY3TGiMJRjig== 0000950116-00-000201.txt : 20000209 0000950116-00-000201.hdr.sgml : 20000209 ACCESSION NUMBER: 0000950116-00-000201 CONFORMED SUBMISSION TYPE: SC 13D PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20000208 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: NETWORKS NORTH INC CENTRAL INDEX KEY: 0000797313 STANDARD INDUSTRIAL CLASSIFICATION: CABLE & OTHER PAY TELEVISION SERVICES [4841] IRS NUMBER: 112805051 STATE OF INCORPORATION: NY FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: SC 13D SEC ACT: SEC FILE NUMBER: 005-52525 FILM NUMBER: 526661 BUSINESS ADDRESS: STREET 1: 14 METEOR DR STREET 2: BLDG 18 CITY: ETOBOCOKE ONTARIO STATE: A6 ZIP: 00000 BUSINESS PHONE: 4166756666 MAIL ADDRESS: STREET 1: 14 METEOR DR CITY: ETOBICOKE ONTARIO STATE: A6 FORMER COMPANY: FORMER CONFORMED NAME: NTN CANADA INC DATE OF NAME CHANGE: 19961016 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: NETSTAR ENTERPRISES INC CENTRAL INDEX KEY: 0001104915 STANDARD INDUSTRIAL CLASSIFICATION: [] FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: SC 13D BUSINESS ADDRESS: STREET 1: 2225 SHEPPARD AVE EAST STE 100 STREET 2: TORONTO ONTARIO CITY: CANADA M2J 5C2 BUSINESS PHONE: 4164948222 MAIL ADDRESS: STREET 1: 2225 SHEPPARD AVE EAST STE 100 STREET 2: TORONTO ONTARIO CITY: CANADA M2J 5C2 SC 13D 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 SCHEDULE 13D (Rule 13d-101) INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2(a) (Amendment No. 1)(1) Networks North Inc. - ------------------------------------------------------------------------------- (Name of Issuer) Common Stock, par value $.0467 per share - ------------------------------------------------------------------------------- (Title of Class of Securities) 629409-40-0 - ------------------------------------------------------------------------------- (CUSIP Number) David T. Patterson NetStar Enterprises Inc. Suite 100 2225 Sheppard Avenue East Toronto, Ontario Canada M2J 5C2 (416) 490-7083 - ------------------------------------------------------------------------------- (Address) January 12, 2000 - ------------------------------------------------------------------------------- (Date of Event Which Requires Filing of this Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box. Note: Schedules filed in paper format shall include a signed original and five copies of the Schedule, including all exhibits. See Rule 13d-7(b) for other parties to whom copies are to be sent. - -------- (1) The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page. The information required in the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). - ------------------------------------------------------------------------------- CUSIP No. 629409-40-0 SCHEDULE 13D Page 2 of 5 Pages ----------- --- - ------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) NetStar Enterprises Inc. ______________________________________________________________________________ 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] (b) [ ] ______________________________________________________________________________ 3 SEC USE ONLY ______________________________________________________________________________ 4 SOURCE OF FUNDS* WC ______________________________________________________________________________ 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] ______________________________________________________________________________ 6 CITIZENSHIP OR PLACE OF ORGANIZATION Canada _______________________________________________________________________________ | | NUMBER OF | 7 | SOLE VOTING POWER SHARES | | 925,787 BENEFICIALLY |_____|________________________________________________________ OWNED BY | | EACH | 8 | SHARED VOTING POWER REPORTING | | 0 PERSON WITH |_____|________________________________________________________ | | | 9 | SOLE DISPOSITIVE POWER | | 925,787 |_____|________________________________________________________ | | | 10 | SHARED DISPOSITIVE POWER | | 0 _______________|_____|_________________________________________________________ 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 925,787 ______________________________________________________________________________ 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] ______________________________________________________________________________ 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 32.4% ______________________________________________________________________________ 14 TYPE OF REPORTING PERSON* CO ______________________________________________________________________________ *SEE INSTRUCTIONS BEFORE FILLING OUT -2- - ---------------------------------------- ---------------------- CUSIP No. 629409-40-0 Page 3 of 5 Pages ----------- --- - ---------------------------------------- ---------------------- This Amendment No. 1 to Schedule 13D ("Amendment No. 1") amends the Schedule 13D dated October 4, 1994 (the "Original Schedule") filed by Labatt Communications Inc. ("LCI"), with respect to shares of Common Stock, par value $.0467 per share (the "Common Stock"), of Networks North, Inc. (formerly known as "NTN Canada, Inc.") (the "Issuer"), a New York corporation. Item 1 Security and Issuer This Amendment No. 1 relates to the Common Stock of the Issuer. The principal executive offices of the Issuer are located at 14 Meteor Drive, Etobicoke, Ontario, Canada M9W 1A4. NetStar Enterprises Inc. ("NetStar") acquired the Common Stock from LCI as part of an internal corporate restructuring of LCI during 1996. Item 2 Identity and Background (a) NetStar is a corporation organized under the laws of Canada. It is a wholly-owned subsidiary of NetStar Communications Inc. ("Parent") which is also organized under the laws of Canada. (b) Suite 100 2225 Sheppard Avenue East Toronto, Ontario Canada M2J 5C2 (c) NetStar is principally engaged in the business of television production and broadcasting. Parent is a television production and broadcasting holding company. (d) During the past five years, neither NetStar, Parent, nor any of the executive officers or directors of NetStar listed on Exhibit A nor of Parent listed on Exhibit B, has been convicted in a criminal proceeding. (e) During the past five years, neither NetStar, Parent, nor any of the executive officers or directors of NetStar listed on Exhibit A nor of Parent listed on Exhibit B, has been a party to a civil proceeding of a judicial or administrative body and as a result of which it was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws, or prohibiting any violation of such laws. Exhibit A sets forth the name, address, present principal occupation, and citizenship of each officer and director of NetStar. Exhibit B sets forth the name, address, present principal occupation, and citizenship of each officer and director of Parent. -3- - ---------------------------------------- ---------------------- CUSIP No. 629409-40-0 Page 4 of 5 Pages ----------- --- - ---------------------------------------- ---------------------- Item 3 Source and Amount of Funds or Other Consideration The Common Stock was acquired by LCI from the Issuer pursuant to a Stock Purchase Agreement dated as of October 4, 1994 between LCI and the Issuer. A copy of the Stock Purchase Agreement is attached to the Original Schedule as an exhibit. LCI used working capital funds to acquire the Common Stock. Item 4 Purpose of Transaction As of the date of this Amendment No. 1, NetStar is holding its shares of Common Stock with a view to selling such shares. However, there can be no assurance that NetStar will sell all or any of its shares. See also the response to Item 6 below. Item 5 Interest in Securities of the Issuer As of the date of this Amendment No. 1, NetStar owns 925,787 shares of Common Stock, representing approximately 32.4% of the outstanding shares of Common Stock. NetStar has the sole power to vote and dispose of such shares of Common Stock, subject to the Letter Agreement referred to in the response to Item 6 below. Item 6 Contracts, Arrangements, Understandings or Relationships with respect to Securities of the Issuer Pursuant to a Letter Agreement dated January 12, 2000 (the "Letter Agreement"), NetStar has agreed to sell all of its Common Stock to an unaffiliated third party (the "Purchaser"). The obligation of the Purchaser to consummate the purchase of the Common Stock pursuant to the Letter Agreement is subject to the conditions specified in the Letter Agreement, and there can be no assurance that Purchaser will consummate the purchase of the Common Stock pursuant to, or on the terms contemplated in, the Letter Agreement. Item 7 Material to Be Filed as Exhibits Attached as Exhibit C to this Amendment No. 1 is a copy of the Letter Agreement. -4- - ---------------------------------------- ---------------------- CUSIP No. 629409-40-0 Page 5 of 5 Pages ----------- --- - ---------------------------------------- ---------------------- SIGNATURE After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. February 7, 2000 -------------------------------------------- (Date) NetStar Enterprises Inc. /s/ David T. Patterson -------------------------------------------- (Signature) Vice President, General Counsel & Secretary -------------------------------------------- (Title) -5- EXHIBIT A NetStar Enterprises Inc.
- ------------------------------------------------------------------------------------------------------------------ Name Citizenship Present Principal Occupation - ------------------------------------------------------------------------------------------------------------------ A. Gordon Craig Canada Director; Chairman and CEO 2225 Sheppard Avenue East Suite 100 Toronto, Ontario M2J 5C2 - ------------------------------------------------------------------------------------------------------------------ Jim S. Thompson Canada Director; President 2225 Sheppard Avenue East Suite 100 Toronto, Ontario M2J 5C2 - ------------------------------------------------------------------------------------------------------------------ Ronald A. Petrescue Canada Director; Executive Vice President 2225 Sheppard Avenue East and President, NetStar Operations Suite 100 Toronto, Ontario M2J 5C2 - ------------------------------------------------------------------------------------------------------------------ Lorne C. Stephenson Canada Executive Vice President, 2225 Sheppard Avenue East Administration Suite 100 Toronto, Ontario M2J 5C2 - ------------------------------------------------------------------------------------------------------------------ Mary G. Currie Canada Vice President, Finance and Planning 2225 Sheppard Avenue East and Acting CFO Suite 100 Toronto, Ontario M2J 5C2 - ------------------------------------------------------------------------------------------------------------------ Roderick Brace Canada Vice President 2225 Sheppard Avenue East Suite 100 Toronto, Ontario M2J 5C2 - ------------------------------------------------------------------------------------------------------------------ Gerald S. Frappier Canada Vice President 1755 Rene Levesque Blvd. East Montreal, Quebec H2K 4P6 - ------------------------------------------------------------------------------------------------------------------ Patricia J. Cross Canada Vice President, 2225 Sheppard Avenue East Human Resources Suite 100 Toronto, Ontario M2J 5C2 - ------------------------------------------------------------------------------------------------------------------ J. Laurie Haines Canada Vice President and Chief Information 2225 Sheppard Avenue East Officer Suite 100 Toronto, Ontario M2J 5C2 - ------------------------------------------------------------------------------------------------------------------ Keith W. Pelley Canada Vice President, Programming and 2225 Sheppard Avenue East Production Suite 100 Toronto, Ontario M2J 5C2 - ------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------ Name Citizenship Present Principal Occupation - ------------------------------------------------------------------------------------------------------------------ Wayne Scrivens Canada Vice President, Technical Operations 2225 Sheppard Avenue East and Engineering Suite 100 Toronto, Ontario M2J 5C2 - ------------------------------------------------------------------------------------------------------------------ David T. Patterson Canada Vice President, General Counsel and 2225 Sheppard Avenue East Secretary Suite 100 Toronto, Ontario M2J 5C2 - ------------------------------------------------------------------------------------------------------------------ Astrid Zimmer Canada Assistant Secretary 2225 Sheppard Avenue East Suite 100 Toronto, Ontario M2J 5C2 - ------------------------------------------------------------------------------------------------------------------ John D. Caplice Canada Treasurer 2225 Sheppard Avenue East Suite 100 Toronto, Ontario M2J 5C2 - ------------------------------------------------------------------------------------------------------------------ Craig E. Daigle Canada Assistant Treasurer 2225 Sheppard Avenue East Suite 100 Toronto, Ontario M2J 5C2 - ------------------------------------------------------------------------------------------------------------------
A-2 EXHIBIT B NetStar Communications Inc.
- ------------------------------------------------------------------------------------------------------------------ Name Citizenship Present Principal Occupation - ------------------------------------------------------------------------------------------------------------------ William P. Burkhardt United States of America Director; Senior Vice President and 77 West 66th Street, 21st Floor Managing Director, ESPN International New York, New York 10023 - ------------------------------------------------------------------------------------------------------------------ Christine F. Driessen United States of America Director; Executive Vice President ESPN Plaza, 935 Middle Street and CFO, ESPN, Inc. Bristol, Connecticut 06010-7454 - ------------------------------------------------------------------------------------------------------------------ Donald G. Campbell Canada Director; Businessman 8 Mariners Haven RR #4, Box 4492 Collingwood, Ontario L9Y 4T9 - ------------------------------------------------------------------------------------------------------------------ Wayne T. Egan Canada Director; Lawyer, Weir & Foulds 130 King Street West Suite 1600, Exchange Tower Toronto, Ontario M5X 1J5 - ------------------------------------------------------------------------------------------------------------------ John D. McKellar Canada Director; Lawyer, Weir & Foulds 130 King Street West Suite 1600, Exchange Tower Toronto, Ontario M5X 1J5 - ------------------------------------------------------------------------------------------------------------------ John L. Pandell Canada Director; Lawyer, Weir & Foulds 130 King Street West Suite 1600, Exchange Tower Toronto, Ontario M5X 1J5 - ------------------------------------------------------------------------------------------------------------------ A. Gordon Craig Canada Director; Chairman and CEO 2225 Sheppard Avenue East Suite 100 Toronto, Ontario M2J 5C2 - ------------------------------------------------------------------------------------------------------------------ Jim S. Thompson Canada Director; Vice President 2225 Sheppard Avenue East Suite 100 Toronto, Ontario M2J 5C2 - ------------------------------------------------------------------------------------------------------------------ Lorne C. Stephenson Canada Executive Vice President, 2225 Sheppard Avenue East Administration Suite 100 Toronto, Ontario M2J 5C2 - ------------------------------------------------------------------------------------------------------------------ Mary G. Currie Canada Vice President, Finance and Planning 2225 Sheppard Avenue East and Acting CFO Suite 100 Toronto, Ontario M2J 5C2 - ------------------------------------------------------------------------------------------------------------------
B-1
- ------------------------------------------------------------------------------------------------------------------ Name Citizenship Present Principal Occupation - ------------------------------------------------------------------------------------------------------------------ Ronald A. Petrescue Canada Vice President 2225 Sheppard Avenue East Suite 100 Toronto, Ontario M2J 5C2 - ------------------------------------------------------------------------------------------------------------------ Roderick Brace Canada Vice President 2225 Sheppard Avenue East Suite 100 Toronto, Ontario M2J 5C2 - ------------------------------------------------------------------------------------------------------------------ Gerald S. Frappier Canada Vice President 1755 Rene Levesque Blvd. East Montreal, Quebec H2K 4P6 - ------------------------------------------------------------------------------------------------------------------ Kenneth B. Murphy Canada Vice President 2225 Sheppard Avenue East Suite 100 Toronto, Ontario M2J 5C2 - ------------------------------------------------------------------------------------------------------------------ Patricia J. Cross Canada Vice President, 2225 Sheppard Avenue East Human Resources Suite 100 Toronto, Ontario M2J 5C2 - ------------------------------------------------------------------------------------------------------------------ J. Laurie Haines Canada Vice President and Chief Information 2225 Sheppard Avenue East Officer Suite 100 Toronto, Ontario M2J 5C2 - ------------------------------------------------------------------------------------------------------------------ David T. Patterson Canada Vice President, General Counsel and 2225 Sheppard Avenue East Secretary Suite 100 Toronto, Ontario M2J 5C2 - ------------------------------------------------------------------------------------------------------------------ Astrid Zimmer Canada Assistant Secretary 2225 Sheppard Avenue East Suite 100 Toronto, Ontario M2J 5C2 - ------------------------------------------------------------------------------------------------------------------ John D. Caplice Canada Treasurer 2225 Sheppard Avenue East Suite 100 Toronto, Ontario M2J 5C2 - ------------------------------------------------------------------------------------------------------------------ Craig E. Daigle Canada Assistant Treasurer 2225 Sheppard Avenue East Suite 100 Toronto, Ontario M2J 5C2 - ------------------------------------------------------------------------------------------------------------------
B-2 EXHIBIT C DELIVERED - --------- January 12, 2000 NetStar Enterprises Inc. 2225 Sheppard Avenue East Suite 100 Toronto, Ontario M2J 5C2 Attention: Lorne C. Stephenson, Executive Vice President, Administration Dear Sirs: Re: Purchase by Jeffrey Kirsch and HDL Capital Corporation, both on behalf of a company to be incorporated and without personal liability (collectively, the "Purchaser") of 925,787 shares (the "Shares") in the capital stock of Networks North Inc. (the "Company") owned by NetStar Enterprises Inc. ("NetStar") Dear Sirs: Further to our discussions and correspondence, this letter will confirm that, subject to the provisions of this letter, NetStar is prepared to sell all, but not less than all, the Shares to the Purchaser based on the following basic principles. 1. The purchase price for the Shares shall be $3.00 (U.S.) per share for an aggregate purchase price of $2,777,361.00 (U.S.). 2. The Purchaser shall be permitted eighty (80) days from the date hereof to complete its due diligence in respect of the Company's business and affairs. 3. If satisfied with the due diligence and if it wishes to proceed with the transaction, the Purchaser shall advise NetStar in writing that it wishes to proceed and whether it believes the transaction is: (a) exempt from the take-over bid provisions contained in the Securities Act (Ontario) (the "Act") and the purchaser wishes to close pursuant to such exemption or (b) is not exempt from such provisions and the Purchaser intends to make a formal take-over bid pursuant to the Act. If NetStar agrees that the transaction would be exempt from the take-over bid provisions of the Act; then, subject to paragraph 4, this agreement shall constitute a binding agreement of purchase and sale, and the transaction shall close within five days of the Purchaser's notice to NetStar. If NetStar does not so agree NetStar shall not be required to sell the Shares in such manner. If the Purchaser confirms it intends to make a formal take-over bid pursuant to the Act, NetStar agrees that, subject to C-1 paragraph 4, this agreement shall constitute a binding agreement to tender the Shares to such take-over bid provided the price per share pursuant to the bid is $3.00 (U.S.) or more (the "Offer Price"). NetStar shall have the right to withdraw the Shares from the take-over bid at any time prior to such Shares being taken up and paid for by the Purchaser if a third party makes a take-over bid at a price per share which exceeds the Offer Price. If NetStar withdraws the Shares and tenders the Shares to the higher take-over bid, NetStar shall, upon receipt of payment for the shares tendered, pay to the Purchaser an amount per share sold by NetStar equal to 50% of the amount by which the price received by NetStar exceeds the initial Offer Price (the "Break Fee"). Any formal take-over bid shall be open for acceptance for not more than 21 days (or for any additional period to the extent required to comply with applicable securities laws, such additional period to be referred to herein as the " Additional Period") and in any event, the Purchaser shall take-up and pay for the shares under the bid no later than 45 days (plus any applicable Additional Period) after the date of the notice given by the Purchaser to NetStar under this paragraph 3 (unless the Purchaser increases the Offer Price, in which case the time periods set out herein shall be extended for an additional period or periods of 10 days or such other or greater period(s) necessary to comply with applicable securities laws), failing which NetStar shall have the right to terminate this agreement without prejudice to any claims that NetStar may have against the Purchaser. For the sake of clarity, the Break Fee, if payable, shall be based on the Purchaser's Initial Offer Price. It is also understood that no Break Fee shall be payable if the Purchaser purchases the Shares. The Purchaser represents and warrants to NetStar that: (a) it is buying the Shares for its own account without a view to distribution and (b) any take-over bid will not be made to persons other than shareholders which are Canadian residents and the take-over bid circular shall contain such provisions in that regard as are satisfactory to NetStar in its sole discretion. 4. The Purchaser acknowledges that NetStar has informed the Purchaser that NetStar is in discussions with a third party to sell the Shares for at least $3.00 (U.S.) per Share. If at any time NetStar executes an agreement with a third party to sell the Shares prior to the time that: a. this agreement becomes a binding agreement under paragraph 3; and b. i. in the case of an Exempt Transaction, the Purchaser actually delivers a cheque to NetStar for the aggregate purchase price as set out above; or C-2 ii. in the case of a formal take-over bid, the Purchaser has actually mailed the take-over bid circular to the shareholders, NetStar shall have no further obligation to the Purchaser with respect to the Shares and all obligations under this agreement shall terminate including NetStar's obligation to pay the Break Fee to the Purchaser. The Purchaser agrees that if it makes a formal take-over bid, it will not withdraw or amend the take-over bid (except to increase the consideration payable per Share or due to a material adverse change in the Company's business or affairs) after mailing the take-over bid circular to the shareholders. 5. The Purchaser acknowledges and confirms to NetStar that the Purchaser is prepared to proceed with the transaction contemplated hereby in accordance with the terms of this agreement without the Company's board of directors prior approval. 6. Neither party shall make any public announcement regarding a transaction between the Purchaser and NetStar in respect of the Shares until the closing date, unless required by applicable laws; provided however, NetStar's nominees to the Company's board of directors shall be permitted to disclose to the other Company directors that NetStar has entered into an agreement which contemplates a sale of all of the Shares. Each party is responsible for any fees or expenses incurred by it in connection with this possible transaction. 7. Any obligation of NetStar to sell the Shares to the Purchaser shall terminate, in any event, on April 10, 2000. 8. HDL Capital Corporation and Jeffery Kirsch hereby unconditionally and irrevocably guarantee to NetStar the obligations of the Purchaser set out herein. C-3 If the foregoing reflects our agreement, we would ask that you please confirm the same by executing this letter in the space provided below by not later than 5:00 p.m. on January 13, 2000. Yours very truly, *HDL Capital Corporation Per: /s/ B. Grybowski /s/ Jeffrey Kirsch - ---------------------- ---------------------------- B. Grybowski *Jeffrey Kirsch *Both of which are signing on behalf of a company to be incorporated, and without personal liability. ACCEPTANCE The undersigned agrees with the terms of this letter this 12th day of January, 2000. NETSTAR ENTERPRISES INC. Per: /s/ Lorne C. Stephenson ------------------------------------------------------------- Lorne C. Stephenson, Executive Vice President, Administration C-4 -----END PRIVACY-ENHANCED MESSAGE-----