Update 09/02/20 11:50 PM ET: The Audet family, which controls Cogeco, have indicated that they have no plans to sell their shares and will not support the proposal.
“Altice’s non-binding proposal United States and Rogers Communications Inc., which was preemptively announced today by Altice and Rogers, has been reviewed by Gestion Audem Inc., a company controlled by the members of the Audet family owning 69 percent of all voting rights of CGO which in turn controls 82.9 percent of all voting rights of CCA. Gestion Audem inc. has already indicated that it does not intend to sell its shares and that it will not support the proposal, ”the company said in a statement. Press release.
The original story is below.
Rogers confirmed its agreement with Altice USA to purchase the Canadian assets of Cogeco for a net purchase of approximately C $ 4.9 billion.
The agreement between Rogers and Altice USA, a US cable company, is conditional on the successful acquisition of Cogeco by Altice USA.
Altice USA has detailed an offer to buy Cogeco for C $ 10.3 billion and to resume its Atlantic Broadband activities in the United States, then to sell the Canadian assets to Rogers. The Rogers transaction is conditional on the fulfillment of the conditions set out in the Altice USA offer.
“Rogers is excited about the opportunity to expand its line of advanced technologies and products to an additional 1.8 million homes and businesses,” Rogers CEO Joe Natale said in a press release.
“Under the leadership of Mr. Audet, the Audet family and the 4,500 members of the Cogeco team, Cogeco has built an iconic company in Canada and the United States. This significant offer reflects the tremendous accomplishments of the Audet family and Cogeco employees, ”continued Natale.
The Toronto-based national carrier is Cogeco’s largest long-term shareholder as it owns 41% of the outstanding CGO subordinate voting shares and 33% of the outstanding CCA subordinate voting shares.
“Under the terms of the agreement with Altice USA, Rogers will be entitled to receive the bonus offered by Altice USA to all subordinate voting shareholders,” Rogers noted in a press release.
“Therefore, the net consideration payable by Rogers for Cogeco’s Canadian assets reflects a gross price of $ 5.5 billion, less the premium on shares currently held by Rogers of $ 0.6 billion, less the value current Rogers stock of $ 1.5 billion, for a net cash consideration of $ 3.4 billion.
Rogers and Altice USA say they are confident that if the offer is accepted, the transaction will receive all required regulatory approvals in a timely manner.
Altice USA expects to complete the transactions within six to nine months of signing the definitive agreements.
The Premier of Quebec, François Legault, expressed his opposition to the proposal and pledged to prevent the move of Cogeco’s head office outside Quebec.
Update 09/02/20 1:00 p.m. ET: The title has been updated to reflect the clarity and developments of the story.