- La Caisse is selling nearly 11 per cent of its stake in Cogeco Communications (TSX:CCA) at C$67.45 per share, generating about C$229 million as part of its routine portfolio rebalancing
- Despite the sale, La Caisse remains the largest holder of Cogeco Communications’ subordinate shares; the telecom serves 1.6 million customers across Canada and the U.S.
- La Caisse has been invested in Cogeco Communications since 2013, contributing to major milestones including the MetroCast acquisition in 2017 and the purchase of Rogers’ stake in 2023
- Cogeco Communications stock (TSX:CCA) last traded at C$71.76
Investment fund La Caisse said it will sell a portion of its holdings in Cogeco Communications (TSX:CCA), representing nearly 11 per cent of the telecom company’s issued and outstanding subordinate voting shares. The transaction is priced at C$67.45 per share, generating gross proceeds of approximately C$229 million.
La Caisse described the move as part of its regular portfolio rebalancing, noting that despite the sale it will remain the largest holder of subordinate shares in Cogeco Communications. The company provides internet, mobile, television, and home phone services to 1.6 million residential and business customers across Canada and the United States.
La Caisse’s relationship with Cogeco Communications spans more than a decade. It first invested in the company in 2013, extending a C$50 million loan. Four years later, in 2017, La Caisse contributed US$315 million toward Cogeco Communications’ acquisition of MetroCast’s U.S. cable systems—one of the company’s most significant expansion moves south of the border. Most recently, in 2023, La Caisse purchased Rogers Communications’ (TSX:RCI) stake in Cogeco Communications, further solidifying its role as a key strategic investor.
Following the latest transaction, La Caisse said its investment approach remains aligned with supporting Cogeco Communications’ long-term growth, even as it adjusts its holdings to maintain a balanced overall portfolio.
“La Caisse has supported Cogeco Communications since 2013 and continues to firmly believe in its potential. Our participation in several major transactions, including the purchase of a C$350-million block of shares in 2023, underscores the confidence we have in the company and the direction it is taking,” Kim Thomassin, executive vice-president and head of Québec at La Caisse, said in a news release. “The funds generated will be redeployed in Québec companies to support and accelerate their growth.”
La Caisse de dépôt et placement du Québec is a major Canadian institutional investor that manages public and parapublic pension and insurance funds on behalf of millions of Quebécers. Established in 1965 by the National Assembly of Québec, it is one of Canada’s largest pension fund managers, overseeing a diversified global portfolio that includes public markets, private equity, real estate, infrastructure, and private debt.
Cogeco Communications Inc. operates as a telecommunications corporation in Canada and the United States. The company operates in two segments, Canadian Telecommunications and American Telecommunications. It offers Internet, video, wireless, and wireline phone services to residential and small business customers through its two-way broadband cable networks.
Cogeco Communications stock (TSX:CCA) last traded at C$71.76 and has risen more than 18 per cent since this time last year.
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