Altice USA Makes A Takeover Bid for Cogeco

U.S. cable operator Altice USA has made a takeover bid of $ 10.3 billion for Cogeco and Cogeco Communications as part of a plan that would allow it to sell the Canadian assets of Montreal companies to Rogers Communications for $ 5.5 billion $.

Rogers confirmed the news that she already owns 41% of the outstanding subordinate voting shares of Cogeco and 33% of the outstanding subordinate voting shares of Cogeco Communications.

Financial details of the deal for Cogeco’s Canadian assets include a payment of $ 800 million to executive chairman of the board, Louis Audet, and members of the Audet family.

Rogers and Altice will pay 106.53 dollars for each share of Cogeco and 134.22 dollars for those of the subsidiary Cogeco Communications, specifying that these are premiums of 36% and 37% respectively for the shares of the company. parent company and its subsidiary compared to the closing prices on August 31.

The mechanism of the transaction provides that Altice USA will purchase all of the shares of Cogeco and Cogeco Communications before reselling the Canadian operations to Rogers. The latter will therefore be able to receive the premium on all the shares it already owns and will have to pay a gross amount of 5.5 billion dollars to Altice to buy them back. However, with the premium expected to total $ 600 million and Rogers shares are currently worth around $ 1.5 billion, the Ontario company will find itself spending a net $ 3.4 billion to acquire the shares. Cogeco’s Canadian operations.

“This important offer reflects the incredible accomplishments of the Audet family and Cogeco employees. Rogers is excited to expand its line of advanced technologies and products to 1.8 million additional homes and businesses, ”said Joe Natale, President and CEO of Rogers Communications, in a statement. communicated.

Cogeco’s stock climbed 20%, or $ 16.40, to $ 95.30 late in the morning on the Toronto Stock Exchange, while that of Cogeco Communications gained 16.93%, or $ 16.82, at $ 116.17.

De son côté, Altice USA conservera les actifs américains de Cogeco, regroupés sous la bannière Atlantic Broadband, pour un montant de 4,8 milliards de dollars.

Atlantic Broadband est en ce moment la neuvième entreprise de services de télécommunications en importance aux États-Unis. L’entreprise sert une clientèle résidentielle et d’affaires dans les États du Connecticut, du Delaware, de la Floride, du Maine, du Maryland, du New Hampshire, de New York, de Pennsylvanie, de Caroline du Sud, de Virginie et de Virginie occidentale.

Dans un communiqué, la direction d’Altice USA soutient qu’Atlantic Broadband pourra bénéficier d’une meilleure efficacité opérationnelle et d’investissements supplémentaires.

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Summary

U.S. cable operator Altice USA has made a takeover bid of $ 10.3 billion for Cogeco and Cogeco Communications as part of a plan that would allow it to sell the Canadian assets of Montreal companies to Rogers Communications for $ 5.5 billion $.

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