Rogers Raises Stakes In Cogeco Cable, Cogeco Inc.
$163 Million In Stock Transactions Lift Equity Stakes To 20%, 30%
Mike Reynolds -- Multichannel News, 11/27/2009 10:59:15 AM
Rogers Communications has increased its stakes in Cogeco Cable and its parent company.
Canada's top cable operator on Nov. 26 said it had entered into agreements to purchase 3.2 million shares or 9.7% of Cogeco Cable's outstanding shares for $116.6 million or, $36.43 per share, excluding commissions, from third parties. The agreements give Rogers some 9.8 million subordinate voting shares in Cogeco Cable, which operates systems in Quebec and Ontario, Canada and Portugal, or 29.8%, while it controls 20.2% of its equity.
As for the outstanding shares of parent Cogeco Inc., Rogers acquired 1.62 million shares, or 10.9%, at $28.61 per, for an aggregate total of $46.4 million. With the purchase Rogers raised its stake in the media and communications company to over 5.02 million shares, or 33.6% of the subordinated voting shares and 29.9% of its equity.
Through its subsidiary Cogeco Diffusion, Cogeco also owns and operates the Rythme FM radio stations in Montréal, Québec City, Trois-Rivières and Sherbrooke, as well as the FM 93 radio station in Québec City.
RCI said it is acquiring the Cogeco Inc. and Cogeco Cable Inc. shares for investment purposes. RCI has no current intention of acquiring ownership of or control or direction over any additional Cogeco Inc. or Cogeco Cable Inc. shares, but reserves the right to
acquire more, or sell 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 companies trade on the Toronto Stock Exchange: Rogers as RCI.A and RCI.B; Cogeco Inc. as CGO; and Cogeco Cable as CCA. Rogers also trades on NYSE s RCI.
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