US Cable Company bids 3 10.3b for Kozeco, sells CDN. Assets to Rogers

Kozeko Inc. And Kozeco Communications Inc. Faced with an offer of $ 10.3 billion, US Cable will be taken over by New York Cable Company and its Canadian assets to long-term shareholder Rogers Communications Inc.

Altes USA Inc. On Wednesday it said it had made an offer to buy Kozeko Inc. and Kozeco Communications Inc. and had reached an agreement to sell the companies’ Canadian assets to Rogers for $ 4.9 billion.

“We greatly appreciate and appreciate the legacy created by the Audit family with Kogoco, who have built an iconic company across Canada and the US, driven by continued investment in outstanding customer service and technology,” Altis Chief Executive Dexter Goy said in a statement.

“We are confident that Mr. Adette and the CoJeco boards will work in the best interests of all stakeholders and will greatly appreciate this offer.”

The entire cash deal includes $ 800 million for the ownership interests and voting shares held by Kozico executive chairman Louis Audette and his family.

Altis shares 106.53 per share for the remaining Kozeco Inc. subordinate voting shares and each Kogeco Communications Inc. Subordinate voting must pay 134.22 per share.

This offer is a premium of about 30% on a one-month volume-weighted average of each stock.

Altis has made arrangements to sell Kogoko’s Canadian assets to Rogers, the Montreal-based company’s largest shareholder.

Rogers pays $ 4.9 billion – fully financing the company’s current cash reserves.

“Under the leadership of Mr. Audette, the Audette family and 4,500 Kozaco team members, Kozaco has built an iconic company in Canada and the United States,” Rogers President and Chief Executive Joe Natale said in a statement.

“This meaningful offer reflects the amazing success of the Audit family and Kogoco employees.”

If Cogeco accepts Altis’ transaction and the Rogers agreement continues, Altis will own all of Cogeco’s US assets, including Atlantic Broadband, the cable operator that provides broadband, video and telephony services to residential and business customers in 11 U.S. states.

This report of the Canadian Press was first published on September 2, 2020.

Companies in this story: (TSX: CCA, TSX: CGO, TSX: RCI.B)

Tara Deschamps, The Canadian Press