MONTREAL – Cogeco Cable announced today that its purchase of Portuguese cable operator Cabovisao has been completed.
Cartt.ca has been following this story for more than a year. To access some of the background, type the word "Cabovisao" or "Portugal" in our search bar for the numerous stories. As first reported by Cartt.ca, Cogeco’s Quebec vice-president Jules Grenier is moving to Portugal to lead the new division. No word on who will replace him in Quebec.
"The completion of this acquisition represents a significant step for Cogeco Cable in our strategy to secure growth opportunities for our shareholders, " said Louis Audet, president and chief executive officer of Cogeco Cable. "Today, we significantly increase our knowledge by welcoming more than 500 experienced employees from Cabovisao – individuals who know the Portuguese marketplace and Cabovisao products. As a result of the acquisition, we also now have a top of the class two-way network serving our Portuguese clients on which we can layer new services to fulfil their current and future telecommunications needs."
"This acquisition is in accordance with the external growth strategy announced by Cogeco Cable last October," he added. "We are now squarely focused on quickly seizing the attractive opportunities this transaction has created for us to increase top-line growth, to increase customer satisfaction and to solidify our competitive position while soundly controlling cost.
"With the Cabovisao acquisition now complete, Cogeco Cable is a stronger, more broadly based company than ever before. We are looking forward to delivering on the promise of this acquisition and to building value for our shareholders."
Cogeco Cable had purchased on an agreed enterprise value of approximately 465 million euros, all the shares and all senior secured debt of Cabovisao, and provided for the reimbursement of certain other specified liabilities of Cabovisao. The final purchase price will be determined following completion of a post-closing working capital adjustment.
As anticipated, Cogeco Cable Inc. concluded as of July 28, 2006 an amended and restated credit agreement providing for a C$900 million five-year bank credit facility with a group of financial institutions (all figures in Canadian dollars). This facility is composed of three tranches: a revolving tranche of $725 million maturing on July 28, 2011; a non-revolving tranche of $25 million equivalent in euros maturing on July 28, 2011; and a non-revolving tranche of $150 million maturing on July 28, 2011 and principal reductions required are: $15 million on July 28, 2008, $22.5 million on July 28, 2009, $37.5 million on July 28, 2010 and $75 million on July 28, 2011.
