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Cogeco Communications Inc T.CCA

Alternate Symbol(s):  CGEAF

Cogeco Communications Inc. is a telecommunications company, which operates through its business units Cogeco Connexion and Breezeline. It provides Internet, video and wireline phone services in Canada, and in 13 states in the United States (U.S.) under the Cogeco Connexion, oxio, and Breezeline brand names. Breezeline also offers wireless services in most of the U.S. states in which it operates. It operates in two segments: Canadian telecommunications and American telecommunications. The Canadian telecommunications activities are carried out by Cogeco Connexion in the provinces of Quebec and Ontario. The American telecommunications activities are carried out by Breezeline in states: Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New York, Ohio, Pennsylvania, South Carolina, Virginia and West Virginia. The segments provide a range of Internet, video and phone services primarily to residential customers and business services across their coverage areas.


TSX:CCA - Post by User

Post by Defiance2050on Nov 04, 2024 10:06pm
79 Views
Post# 36296364

US Assets and Canadian Telcos at multi-year lows

US Assets and Canadian Telcos at multi-year lowsMy thoughts on the US assets without going into depth on location and how much of the wireline is newer fibre optics is that there continues to be US transactions that support a higher valuations than the average telco trades at. With the ziply transaction announced and earlier this year froniter communications it isn't just regional players being acquired. In the past decade there continue to be consolidation, with transactions anywhere between 8-16 EBITDA/ EV. Far above what CCA USA assets is valued at. The Ohio assets with the decrease in revenue didn't help but nobody is going to time every acquistion and achieve perfect synergy on every transaction. 

In Canada it is unlikely with 5 larger players left that anyone will be allowed to be purchased in whole. However even factoring a bigger discount then there should be in a controlling family and a holding company in CGO the discount is significant from the other telecoms which have their own difficulties and costly acquisitions.

I am doubtful of any sale of assets just that at some point in time the discount in valuation for CCA will be reduced. 


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