3:56 PM PDT 10/18/2020
Cogeco’s controlling shareholder, the Audet family from Montreal, rejected the original unwanted offer on September 2.
The American cable giant Altice USA has increased its unwanted offer for Cogeco Inc., adding money to acquire the business of a Canadian competitor, Atlantic Broadband, while selling Canadian assets to the target company Rogers Communications.
The US television channel said it would pay $ 3.96 billion ($ 5.2 billion) for Cogeco̵7;s Canadian assets and set a deadline of November 18 to complete the hostile takeover deal. In the original offer, Rogers offered the American partner to receive cash in the amount of $ 3.6 billion for Canadian assets of Cogeco, if Altice USA is successful.
In addition to sweetening the acquisition of Cogeco’s controlling shareholder, the Audet family, Altice USA also set a November 18 deadline for concluding a hostile takeover agreement.
“If Altice USA is unable to reach a mutually satisfactory agreement by November 18, 2020, or at least does not see a clear path to completing the transaction, this revised offer will be withdrawn,” the cable giant said in a statement on Sunday.
On September 2, Altice USA unveiled the original $ 7.8 billion Cogeco takeover deal and offered to keep Atlantic Broadband’s Montreal-based business while selling Canadian Cogeco’s business to rival Rogers Communications.
Now, after reviewing the offer, Altice USA seeks to overcome the resistance of the Audet family to the unsolicited offer of the American cable company and Canadian competitor Rogers Communications, which already has a 41 percent stake in Cogeco.
“We are pleased to present an incredibly attractive revised and improved offer for Cogeco that rewards all shareholders and includes feedback from recent discussions with holders of subordinate voting shares. We urge the Cogeco Board to act in the best interests of all shareholders and we ask the councils to discuss our proposal with us, “said Dexter Goy, CEO of Altice USA.
Upon completion of the overall operation, Altice USA will have Atlantic Broadband, the ninth largest U.S. cable operator, with assets in Connecticut, Delaware, Florida, Maine, Maryland, New Hampshire, New York, Pennsylvania, South Carolina, Virginia and the West. .