Loading articles...

Cogeco and Cogeco Communications boards officially reject revised offer

Last Updated Oct 20, 2020 at 1:01 pm MST

A Cogeco sign hangs at the company's annual general meeting in Montreal, on January 14, 2014. Analysts say they are surprised by the reported financial and subscriber strength of Atlantic Broadband, the main U.S. subsidiary of Montreal-based cable and internet provider Cogeco Communications Inc. THE CANADIAN PRESS/Graham Hughes

MONTREAL — The boards of directors at Cogeco Inc. and Cogeco Communications Inc. have unanimously rejected a revised unsolicited takeover offer from Altice USA Inc. and Rogers Communications Inc.

The companies say the boards met Tuesday to consider the $11.1-billion proposal, which was up from a previous offer of $10.3 billion.

At the meeting, Louis Audet, president of the family’s holding company Gestion Audem, confirmed the Audet family has no interest in selling.

Gestion Audem holds 69 per cent of all voting rights of Cogeco Inc., which in turn controls 82.9 per cent of all voting rights of Cogeco Communications Inc.

Under the revised 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.

Altice USA would keep only Cogeco’s U.S. cable assets and sell its Canadian assets to Rogers.

This report by The Canadian Press was first published Oct. 20, 2020.

Companies in this story: (TSX:RCI.B, TSX:CGA, TSX:CCO)

The Canadian Press