Published on 10/20/2020 2:24 PM
The boards of directors of Cogeco and Cogeco Communications unanimously rejected on Tuesday the enhanced purchase offer presented by the American company Altice and Rogers Communications, the two companies said on Tuesday.
After having suffered a “definitive refusal” with a first offer valued at $ 10.3 billion presented in early September, Altice returned to the charge Sunday with an offer of $ 11.1 billion to get their hands on Cogeco and its subsidiary Cogeco Communications.
The new unsolicited offer was immediately rejected by Gestion Audem, the family business of Louis Audet. However, this support is essential to a possible transaction, since the firm controls Cogeco and Cogeco Communications through its shares with multiple voting rights. In fact, even if it only holds a minority of the securities in circulation, the Audet family controls 69% of the votes at Cogeco and 82.9% of those of Cogeco Communications, whose market value is around 6.2 billion. $.
In a press release, the two Montreal companies explained Tuesday that their advice had taken into account the decision of the Audet family and concluded that they would not engage in discussions with Altice and Rogers.
Altice is in fact seeking to acquire the US operations of Cogeco, consolidated into its subsidiary Atlantic Broadband, and its proposal calls for it to sell its Canadian operations to Rogers Communications.