14 DAY TRIAL // Rogers Communications Inc. announced on Thursday that it had inked agreements for the purchase of 3,200,000 subordinate voting shares of Cogeco Cable Inc., as well as for the acquisition of 1,623,500 subordinate voting shares of Cogeco Inc. According to the company, the shares are “pursuant to private agreements with third parties.”
“Rogers Communications is acquiring the subordinate voting shares of Cogeco Cable Inc. at a cash purchase price, excluding commissions, of $36.43 per share, for aggregate consideration of $116.6 million. Rogers Communications is acquiring the subordinate voting shares of Cogeco Inc. at a cash purchase price, excluding commissions, of $28.61, for aggregate consideration of $46.4 million. RCI is acquiring the Cogeco Inc. shares and the Cogeco Cable Inc. shares for investment purposes,” the company announced.
At the same time, Rogers also said that the new acquisitions were not aimed at providing it with the ownership of or control over other Cogeco Inc. or Cogeco Cable Inc. shares. However, the company did say that it reserveed the right to purchase additional shares in the purpose of selling “all or any portion of its holding of such shares or to enter into derivative or other transactions with respect to the shares owned by it.”
The amount of shares the company purchases in Cogeco Cable Inc. represent around 9.7 percent of the outstanding subordinate voting shares of the entity. “After giving effect to these purchases, Rogers Communications will own 9,795,675 subordinate voting shares of Cogeco Cable Inc.,” the company explained, adding that it would account for approximately 29.8 percent of the subordinate voting shares and for around 20.2 percent of Cogeco Cable Inc.
As for the Cogeco Inc. shares that it purchases, they are said to represent around 10.9 percent of the outstanding subordinate voting shares of the company. “After giving effect to these purchases, Rogers Communications will own 5,023,300 subordinate voting shares of Cogeco Inc.,” Rogers also stated. The amount will represent about 33.6 percent of the subordinate voting shares and around 29.9 percent of the equity of Cogeco Inc.