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Cogeco rejects $11.1B takeover bid from Altice and Rogers Communications

Last Updated Oct 18, 2020 at 9:23 pm EST

A Cogeco sign hangs at the company's annual general meeting in Montreal on January 14, 2014. THE CANADIAN PRESS/Graham Hughes

The family that controls the Cogeco companies has rejected a second takeover offer from Altice USA Inc. and its Canadian partner Rogers Communications Inc.

It’s the second offer the Audet family has rejected in as many months, saying in a statement Sunday night that “this is not a negotiating strategy, but a definitive refusal.”

Under the new offer, Altice said it would pay $11.1 billion cash to buy all the shares of Cogeco Communications Inc. and its parent Cogeco Inc., including $900 million to buy the Audet family’s multiple voting shares and their subordinate shares.

That’s up from the previous offer of $10.3 billion, announced last month.

In both scenarios, Altice USA said it planned to keep only Cogeco’s U.S. cable assets and sell its Canadian assets to Rogers, which wants to expand its cable and internet territory in Ontario and make its entry into the Quebec market..

The price Rogers would get for its Cogeco shares would have risen to $5.2 billion from $4.9 billion.

Altice’s revised offer included $123 per share for all the remaining subordinate voting shares of Cogeco Inc. and $150 per share for all the remaining subordinate voting shares of Cogeco Communications, which are publicly traded on the Toronto Stock Exchange.

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