Sirius XM Canada Holdings Inc (XSR.TO) said on Friday that SiriusXM Holdings Inc (SIRI.O), its biggest shareholder, along with two of its top Canadian shareholders will take the satellite radio service private.

Sirius XM Holdings is offering $4.50 per share cash or about $351 million for the shares of its Canadian affiliate.

The shares closed Thursday at $4.23 but had risen from $3.68 on Feb. 11, when news of a potential deal became public -- representing a 22.3 per cent premium.

SiriusXM Holdings said it expects to pay about US$275 million for the transaction, which will increase its stake in Sirius XM Canada to 70 percent from 37 percent, and give it ownership of 30 percent of its voting shares.

Sirius XM Canada said the rest of its equity and voting stakes will be held by Slaight Communications Inc and Toronto-based private equity firm Obelysk Media.

Slaight, a Canadian radio broadcasting company, was Sirius XM Canada's third-biggest shareholder with a 10.2 percent stake of as of Dec. 9, according to Thomson Reuters data.

The Canadian Broadcasting Corp, the national public radio and television broadcaster, will cease to be a shareholder in Sirius XM Canada following the transaction, said Jim Meyer, chief executive of SiriusXM Holdings.

The CBC was Sirius XM Canada's second-biggest shareholder with a 12.5 percent stake of as of Dec. 9, according to Thomson Reuters data.

Sirius XM Canada said the CBC, Slaight and Obelysk Media, its three biggest Canadian shareholders, supported the deal.

Much of Sirius XM Canada's content will continue to be created locally, while the company's existing Canada-led governance structure will be preserved, said Meyer.

--With files from The Canadian Press