TORONTO — Altice USA Inc. and its Canadian partner Rogers Communications Inc. say they’ve revised a takeover offer for the Cogeco companies, which firmly rejected their previous offer because the controlling Audet family didn’t want to sell.
Under the new offer, Altice would pay $11.1 billion cash to buy all the shares of Cogeco Communications Inc. and its parent Cogeco Inc., including $900 million to buy the Audet family’s multiple voting shares and their subordinate shares.
That’s up from Altice’s previous offer of $10.3 billion, announced last month.
In both scenarios, Altice USA plans to keep only Cogeco’s U.S. cable assets and sell its Canadian assets to Rogers, which wants to expand its cable and internet territory in Ontario and make its entry into the Quebec market..
The price Rogers would get for its Cogeco shares would rise to $5.2 billion from $4.9 billion.
Altice’s revised offer includes $123 per share for all the remaining subordinate voting shares of Cogeco Inc. and $150 per share for all the remaining subordinate voting shares of Cogeco Communications, which are publicly traded on the Toronto Stock Exchange.
A joint statement from Altice and Rogers acknowledges that a takeover of Cogeco needs support from the Audet family, but does not say whether they have reached an agreement. Besides the Audets, Altice needs approvals from other shareholders and courts.
This report by The Canadian Press was first published Oct. 18, 2020
Companies in this story: (TSX:RCI.B, TSX:CGA, TSX:CCO)
The Canadian Press