Rogers Communications - President and CEO, Joe Natale
President and CEO, Joe Natale
Source: Altas
  • Rogers Communications (RCI.A) has confirmed an agreement in partnership with NYSE-listed Altice USA to acquire Cogeco’s Canadian assets
  • As part of an overall C$10.3 billion deal, Rogers will acquire the Canadian assets of Cogeco Inc. and Cogeco Communications for a gross price of $5.5 billion
  • Excluding a $600 million premium on the shares currently owned by Rogers and the $1.5 billion value of the company’s current holding, Rogers will pay a net consideration of $3.4 billion
  • Completion of the transaction is conditional on the success of Altice USA’s takeover of Cogeco
  • Rogers Communications (RCI.A) is currently up 5.42 per cent and is trading at $58.19 per share

Rogers Communications (RCI.A) has confirmed an agreement in partnership with NYSE-listed Altice USA to acquire Cogeco’s Canadian assets.

Under the terms of the deal, Altice USA will acquire 100 per cent of Cogeco Inc. and Cogeco Communications for a total all-cash consideration of C$10.3 billion.

This amount is based on a valuation of $106.53 per Cogeco Inc. share and $134.22 per Cogeco Communications share, which represents a 30 per cent premium over the companies’ one-month volume weighted average share price.

As the largest long-term shareholder of Cogeco, Rogers currently holds a 41 per cent stake in Cogeco Inc. and a 33 per cent stake in Cogeco Communications.

Following the acquisition by Altice USA, Rogers will then acquire Cogeco’s Canadian assets for a gross price of $5.5 billion.

Excluding a $600 million premium on Rogers’ currently held shares and the value of Rogers’ Cogeco portfolio of $1.5 billion, the company will acquire its portion of Cogeco’s assets for a net cash consideration of $3.4 billion.

Joe Natale, President and CEO of Rogers Communications, said Cogeco, which was founded by Henri Audet in 1957, has become an iconic company in both Canada and the United States.

“This meaningful offer reflects the tremendous accomplishments of the Audet family and Cogeco’s employees.

“Rogers is excited about the opportunity to expand its breadth of industry leading technologies and products to an additional 1.8 million homes and businesses,” he added.

Rogers expects to finance the transaction with its existing liquidity, and will therefore avoid issuing equity to facilitate the deal.

However, Rogers’ completion of the transaction is dependent on the success of Altice USA’s takeover of Cogeco.

Rogers Communication (RCI.A) is currently up 5.42 per cent and is trading at $58.19 per share at 12:18pm EDT.

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