MONTREAL and TORONTO – Rogers is not just going to quietly walk away from its attempted purchase of Cogeco’s Canadian assets, which the company made clear with another statement today which says it would maintain the company’s headquarters in Montreal and hire even more people if shareholders approve the purchase.
As reported, Altice USA made a $10.3 billion bid for Cogeco Inc. and Cogeco Communications because it wants the company’s American network operations, Atlantic Broadband. The U.S. company came to an agreement to sell Cogeco’s Canadian operations to Rogers, which is already a significant Cogeco shareholder.
Cogeco’s board and controlling shareholder strongly rejected the bid. Both Altice and Rogers committed to pursuing the deal, despite the rejection.
In the statement this morning, which reminds people the company has been operating in Quebec for 35 years, employs 3,000 and has “nearly two million wireless customers” in the province, “upon successful completion of a Cogeco transaction, Rogers would ensure that Cogeco’s headquarters and management team remain in the province, including the operations of the company’s Quebec based media assets,” reads the release.
“This follows a similar approach after the purchase of Fido 16 years ago, with the brand headquartered in the recently renovated downtown Montreal headquarters at Place Bonaventure following an investment of $42 million in modern offices.”
Fido was of course founded in Quebec. Rogers purchased the brand when it bought Microcell for $1.4 billion in 2004.
“Rogers and Fido have deep roots across Quebec and we want to build on them,” said Joe Natale, president and CEO. “We’re passionate about driving Quebec’s digital future and have the scale, expertise and commitment to make it a reality.
“We are committed to investing in high-quality jobs, delivering both wireless and broadband next-generation technology and helping close the connectivity gap in rural and remote Quebec communities. Now more than ever, we want to grow our local presence here and help to contribute to a strong, vibrant Quebec,” he added.
“While we are part of a larger Canada-wide company, our Quebec headquarters and executive team are key to our success. We know our communities and our customers best and are passionate about giving back where we work and live,” added Edith Cloutier, president of Rogers’ Quebec operations in the release.
Since the country’s very first wireless call in Canada, which Rogers completed in 1985 between Montreal and Toronto, the company has invested more than $2 billion in its Quebec networks, adds today’s release. “In January, Rogers began the rollout of Canada’s first 5G network to Montreal and earlier this week Rogers announced that 5G is now available in Gatineau, Quebec City and Trois-Rivieres.”
The company also brought out its big Quebec gun from its board of directors in today’s statement in Robert Dépatie, the former CEO of Videotron.
“As a member of the Rogers Board, I know the commitment to invest and grow in Quebec is shared by the Rogers family, the company and leadership team,” he said. “We support the value being created for all shareholders with this proposal. This is an opportunity to leverage the full weight of Rogers to make even more meaningful, long-term investments to benefit Quebec now and into the future.”
Finally, Rogers quoted, a 2019 PwC study commissioned by the company which says the company’s investments and operations resulted in a total economic footprint in Quebec of over $2.7 billion of output, including over 11,000 full-time jobs generated and supported. It also noted the various charitable activities Rogers has launched and supported in the province.
Please click here for the full release.
