CDPQ to acquire Rogers’ stake in Cogeco companies for $829M

CPE News

CPE News (12.12.2023) – Rogers Communications Inc. (TSX: RCI.A and RCI.B; NYSE: RCI) has agreed to sell all of the subordinate voting shares (SVS) of Cogeco Inc. (CGO) and of Cogeco Communications Inc. (CCA) owned by it to Caisse de dépôt et placement du Québec (CDPQ) in a private transaction for an aggregate purchase price of approximately $829 million.

The shares will be sold for cash at a price of $46.91 per SVS of CGO and $51.40 per SVS of CCA pursuant to a share purchase agreement between RCI and CDPQ. Immediately prior to the sale, RCI will own 5,969,390 SVS of CGO and 10,687,925 SVS of CCA, representing approximately 42.6% of the outstanding CGO SVS and approximately 37.1% of the outstanding CCA SVS, respectively. Following the sale, RCI will own no SVS of CGO or CCA.

Cogeco Inc., controlled by Gestion Audem inc., owns 100% of CCA multiple voting shares (MVS) carrying approximately 84% voting power. Gestion Audem controls 99.8% of CGO MVS with voting control of approximately 69%.

Gestion Audem inc. is a private company controlled by the members of the family of the late Henri and Marie-Jeanne Audet.

With the acquisition, CDPQ will become second largest shareholder in both Cogeco Inc. and Cogeco Communications Inc. acquiring approximately 12% and 5% voting control in the two companies respectively.

photo credit: Cogeco

News Release

Rogers Accelerates De-Leveraging Plans With Private Sale of Cogeco Shares

TORONTO, Dec. 12, 2023 (GLOBE NEWSWIRE) — On December 11, 2023, Rogers Communications Inc. (TSX: RCI.A and RCI.B) (NYSE: RCI) (“RCI”) agreed to sell all of the subordinate voting shares (“SVS”) of Cogeco Inc. (“CGO”) and of Cogeco Communications Inc. (“CCA”) owned by it to Caisse de dépôt et placement du Québec (“CDPQ”) in a private transaction for an aggregate purchase price of approximately $829 million.

The shares will be sold for cash at a price of $46.91 per SVS of CGO and $51.40 per SVS of CCA pursuant to a share purchase agreement between RCI and CDPQ. Immediately prior to the sale, RCI will own 5,969,390 SVS of CGO and 10,687,925 SVS of CCA, representing approximately 42.6% of the outstanding CGO SVS and approximately 37.1% of the outstanding CCA SVS, respectively. Following the sale, RCI will own no SVS of CGO or CCA.

Early warning reports for each of the above sales will be filed under the profiles of CGO and CCA, respectively, on SEDAR+ at www.sedarplus.ca and may also be obtained by contacting the person named below. RCI’s address is 333 Bloor Street East, 10th Floor, Toronto, Ontario, M4W 1G9. The head office of each of CGO and CCA is located at 1 Place Ville Marie, Suite 3301, Montréal, Québec, H3B 3N2.

About Rogers Communications Inc.
Rogers is Canada’s leading wireless, cable and media company that provides connectivity and entertainment to Canadian consumers and businesses across the country. RCI’s shares are publicly traded on the Toronto Stock Exchange (TSX: RCI.A and RCI.B) and on the New York Stock Exchange (NYSE: RCI).

For more information:

Rogers Communications media contact
Sarah Schmidt
647.643.6397
media@rci.rogers.com

Rogers Communications investment community contact
Paul Carpino
647.435.6470
paul.carpino@rci.rogers.com