Under the arrangement proposed by Altice USA, it would take control of Cogeco’s Atlantic broadband operations in the United States and sell Cogeco’s Canadian assets to Rogers.
Rogers, which owns 41% of the subordinate shares of Cogeco Inc. and 33% of the subordinate shares of Cogeco Communications, confirmed the plan in a separate statement on Wednesday, saying it would pay a net cash consideration of $ 3.4 billion. for Cogeco’s Canadian assets if Altice is successful.
“The consideration for the transaction to be paid by Rogers, net of the value of the CCA and CGO shares we currently hold, will be fully funded using existing available cash,” said Anthony Staffieri, Chief Financial Officer of Rogers, in a statement. “We do not anticipate any need to issue equity as a result of this transaction and our current dividend of $ 2.00 per share is maintained.”
Rogers confirmed the plan in a separate statement Wednesday, saying it would pay $ 4.9 billion for Cogeco’s Canadian assets.
In an effort to gain support for the proposal from Cogeco Executive Chairman Louis Audet, Atlice says it is offering “a significant premium” on multiple voting shares held by the Audet family.
Altice is also offering $ 106.53 per subordinate voting share of Cogeco and $ 134.22 per share of Cogeco Communications.
“We respect and greatly appreciate the legacy that the Audet family has created with Cogeco, building an iconic business across Canada and the United States, driven by superior customer service and continued investments in technology,” said Altice USA CEO Dexter Goei said in a statement.
“We are pleased to present this very attractive offer for Cogeco and are confident that Mr. Audet and the Cogeco boards of directors will act in the best interests of all shareholders and will fairly assess this offer.