Rogers announced Monday the sale of all of its shares in Cogeco to pension fund Caisse de dépôt et placement du Québec.
The transaction, worth $829 million, will allow the cable giant to reduce its debt and exit non-core businesses as it focuses on its core competencies, including telecommunications after its acquisition of Shaw.
“This sale further demonstrates our commitment to strengthen our investment grade balance sheet and aggressively reduce our debt leverage ratio,” Tony Staffieri, Rogers president and CEO, said in a press release. “We’re tracking six months ahead on our deleveraging priorities and we’re committed to reducing our debt leverage ratio even further.”
The company had already previously sold $1 billion worth of other non-core assets, largely in real estate, which the company said it expects to complete next year.
“This transaction is a unique opportunity for the Corporations to repurchase shares at an attractive price to realize multiple benefits while ensuring we have the ability to deliver our strategic plan,” said Cogeco President and CEO Philippe Jetté in a separate press release. “Given the current prices of our stocks, which we believe are undervalued, buying back shares represents an attractive use of our capital to build shareholder value.”
“Already active with Cogeco Communications through past acquisitions, CDPQ is supporting the growth projects of this leading telecommunications company as connectivity needs continue to grow,” added Kim Thomassin, executive vice president and head of Québec at CDPQ, in the release. “This major share purchase, orchestrated by CDPQ, is key for the company and its plan to develop the North American market.”
Three years ago, Rogers teamed up with telecom Altice USA to try and buy Cogeco, which has both Canadian and US operations, for $10.3 billion. The offer was rejected.
