Canadian telco Cogeco has rejected an offer by Altice USA to acquire Atlantic Broadband through the purchase of Cogeco’s outstanding shares in the cableco.
Altice USA made an offer to acquire 100% of the issued and outstanding shares of Cogeco, and also to sell all the Canadian assets of Cogeco to the largest long-term shareholder of Cogeco, Rogers Communications. Upon completion of the overall transaction, Altice USA would own all the US assets of Cogeco, namely Atlantic Broadband – the ninth largest cable operator in the US.
Altice USA’s proposed deal would involve a subsequent sale of Cogeco’s Canadian assets to Rogers Communications, currently Cogeco’s largest long-term shareholder, ultimately giving Altice USA control of Atlantic Broadband and Rogers control of the Canadian operation.
However, Cogeco executive chairman Louis Audet and his family (the controlling shareholder) have said they will reject the all-cash offer of C$10.3 billion for Cogeco.
Commenting on the offer, Dexter Goei, Chief Executive Officer of Altice USA said: “We greatly respect and appreciate the legacy the Audet family has created with Cogeco, building an iconic company across Canada and the US that is driven by superior customer service and continuous investments in technology. We are pleased to present this very attractive offer for Cogeco, and are confident that Mr Audet and the Cogeco boards will act in the best interest of all shareholders and fairly evaluate this offer. We look forward to the opportunity to extend Altice USA’s high-quality broadband, video, mobile, and news offerings to more than 1.1 million additional homes and businesses.”