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Bullboard - Stock Discussion Forum 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... see more

TSX:CCA - Post Discussion

Cogeco Communications Inc > Rogers Acquires Shaw
View:
Post by retiredcf on Mar 15, 2021 9:06am

Rogers Acquires Shaw

07:48 AM EDT, 03/15/2021 (MT Newswires) -- Rogers Communications Inc. (RCI-A.TO, RCI-B.TO) and Shaw Communications Inc. (SJR-B.TO) have agreed for Rogers to acquire Shaw in a transaction valued at approximately $26 billion. Shaw's directors and senior management will vote all of their shares in favour of the transaction, and the Shaw family also "fully and irrevocably" supports the deal. This assurance comes after Rogers had previously failed to get hold of another smaller rival, Cogeco (CGO.TO, CCA.TO), after the controlling family there blocked the planned move.

The $26 billion price tag includes $6 billion of Shaw debt and the offer price of $40.50 per share represents a premium of approximately 70% to Shaw's recent Class B Share price. The transaction is not subject to a financing condition and will be funded by cash consideration of $40.50 to all shareholders, with the exception of approximately 60% of the Shaw family shares which will be exchanged for 23.6 million Class B Shares of Rogers. The Shaw family will become one of the largest shareholders of Rogers. Brad Shaw, and another director to be nominated by the Shaw family, will join the Rogers Board.

Synergies are expected to exceed $1 billion annually within two years of closing, and the transaction will be significantly accretive to earnings and cash flow per share as of the first year after closing

The merged company will invest $2.5 billion in 5G networks over the next five years across Western Canada. Approximately 10% of homes in Canada have no Internet access and approximately 600,000 households in Western Canada still cannot access the minimum Internet speeds recommended by the federal government, according to the press statement. The combined company's coast-to-coast fibre network would create new competition for Bell (BCE.TO) and Telus (T.TO) for large enterprise and government customers across Canada, the release added.

Rogers will also establish a $1 billion Rogers Rural and Indigenous Connectivity Fund dedicated to connecting rural, remote and Indigenous communities across Western Canada to high-speed Internet and closing critical connectivity gaps faster for underserved areas. Rogers will consult with Indigenous communities to create Indigenous-owned and operated Internet Service Providers.

The combined company is committed to continue offering affordable wireless plans, with no overage fees. will also not increase wireless prices for Freedom Mobile customers for at least three years following the close of the transaction.

Price: 61.34, Change: -0.41, Percent Change: -0.66

Comment by autofocus111 on Mar 15, 2021 10:31am
The Audet family could have cashed in too but were too stubborn. Expect RCI to dump CCA now.
Comment by autofocus111 on Nov 15, 2021 2:03pm
Is the steady downtrend due to RCI dumping its CCA holdings? Hard to believe the Audets rejected $150 cash. Dopes.
Comment by Defiance2050 on Nov 15, 2021 8:38pm
As they hold over 10% Rogers would have to report the sale of shares. At this point the sell off has nothing to do with them selling. There are fears on the US Cableline front and several companies have taken sizable hits. Dont think AB is represented accordingly to the share price.  From a chart perspective the downturn started just after the WOW asset transaction. On the spectrum and ...more  
Comment by autofocus111 on Nov 16, 2021 5:20pm
Defiance Appreciate the info. Do you know what the timing requirement is for reporting of any share sale? The WOW acquisition announced back at end of June could be the trigger here, but the decision to buy wireless spectrum was announced just a month later could also be a factor. I don't understand the share weakness. Presumably it's related to fears of sustained elevated capex which is ...more  
Comment by Defiance2050 on Nov 17, 2021 1:30pm
Be incredibly cautious with AT&T incredibly high debt and low growth prospects.  I am unsure of the exact reporting requirements but nothing was said during Rogers conference call nor in analysts notes. Nothing is known about freedom whether RCI has to dispose or not. Quebecor, CCA, 3rd party, new entity or even the Shaw deal not going through due to regulatory approvals. I believe ...more  
Comment by autofocus111 on Nov 19, 2021 2:34pm
Defiance "I suspect Rogers is interested in control" What control? RCI has a minority stake. Of course RCI does not want a new competitor, but the Audets call the shots as far as what CCA does. RE: wireless CCA bought spectrum but no details on what they will do with it. Why spend the money and do nothing? I think they are aiming to grab FreedomMobile if RCI is forced to divest ...more  
Comment by Defiance2050 on Nov 20, 2021 12:20pm
Should have emphasized the control I was referring to is share based or acquisition control. In the event Audet tried to sell or merge with a larger telecom common share holders would have a vote which Rogers could be against and/or counter offer.  I suspect if the Shaw/Rogers merger goes through it would likely be with the condition freedom would have to be sold. All speculative at the ...more  
Comment by autofocus111 on Nov 22, 2021 6:23pm
Defiance RE: mobile. $300M is just the start. Seems to me the market is pricing in a move to buy Freedom Mobile and/or capex to build out infrastructure. How much will that cost?
Comment by Defiance2050 on Nov 24, 2021 1:16pm
All unknowns right now I was referencing $10 just to state the extent of the sell off. It will cost to build but that is all capex or investments in capacity but with how the market is reacting it is like cash being burned. The big 3 all spent over 1b more than estimates on the spectrum auction and are up since August 1 (Rogers was flat before the board fiasco and recent Shaw hearings occured ...more  
Comment by autofocus111 on Nov 16, 2021 5:58pm
Defiance "I have no fears on Cogeco." I don't have fears either as my position in CCA is only about the same as that in US telco T and only a quarter the size of my BCE holding. Contemplating if/when it may be a good time to reduce BCE a bit and invest more in one or both of the former two. I may make a move if CCA drops into the low 90's or T drops below 22.
Comment by autofocus111 on Mar 15, 2021 10:41am
Maybe the Peladeau family will convince the Audets that they are doomed unless they merge with Videotron. But the Peladeaus are stingy so don't expect an offer of $150.
Comment by Bookends on Mar 15, 2021 1:19pm
Personally, I would have expected a going private transaction between Audet and Rogers where Audet could have kept a big stake of the company along with Rogers. You would think both parties could have been mature enough to hold constructive talks, but I think Audet was just acting a B**** and ruined it. 
Comment by autofocus111 on Mar 15, 2021 3:28pm
The Audet family had a golden opportunity to participate in a much bigger/stronger entity, but were too power-hungry and now that RCI has found their own golden opportunity in the West they will focus on growing there and will dump CCA to fend on its own. CCA needs wireless to fight Videotron and they ain't getting it. I see PowerCorp-Videotron forcing the Audets into a deal-or-die situation ...more  
Comment by autofocus111 on Mar 15, 2021 3:33pm
Correction Quebecor, not PowerCorp.
Comment by Defiance2050 on Mar 15, 2021 6:41pm
One of the reasons for this was the amount of capital required for infrastructure for cellular. With the new 5G era it is costly to get into cellular. It takes time and money invested for the network to be in place.  Audet could have gotten into cellular if he wanted the company to. I dont believe that all of a sudden an expensive massive merger would be the route they will take. The current ...more  
Comment by autofocus111 on Mar 15, 2021 9:21pm
Some time ago CCA was looking at MVNO to enter mobile on the cheap. Not much progress from the Federal govt on that initiative to date. Yes lack of ability to bundle is a negative. But what may be of greater concern is RCI dumps their CCA holding now that they have a deal and new growth path with the SJR acquisition. Who buys those shares and why would they if CCA is DOA on Quebec mobile? I think ...more  
Comment by autofocus111 on Mar 16, 2021 12:48am
How does Freedom Mobile help CCA? It gives them zero bundling power whatsoever. They need mobile service in Quebec, not the western provinces.  Makes way more sense for BCE to get it since they have the money to build out a real network using those customers and create a strong third competitor in the region. Otherwise the market there will be a duopoly. I don't get these analysts ...more  
Comment by autofocus111 on Mar 16, 2021 12:54am
This part makes more sense. CCA merger with Videtron to get to scale then expand to other provinces. Audets are going to get squeezed. Let's see just how stubborn they are now. Dummies. >>>Still, analysts suggested that the Rogers-Shaw merger would not completely strand Cogeco if the Audet family decides to sell. Though competition concerns would probably prohibit another ...more  
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