Rogers Communications Adds to Stake in Rival Cogeco
Canada's largest cable and mobile phone operator building its equity stake in Montreal-based rival
TORONTO -- Cable giant Rogers Communications has paid $74.9 million to boost its stake in Cogeco Inc. and cable TV unit Cogeco Cable Inc.
Rogers, which in recent years has been building its equity stake in its Montreal-based rival, on Friday said it paid $39.2 million to acquire another 892,250 subordinate voting shares of Cogeco Cable at $43.98 each.
Canada's largest cable and mobile phone operator also paid $35.7 million for an additional 946,090 subordinate voting shares of Cogeco Inc. at $37.77 each.
Rogers said its latest stock purchases in Cogeco were made "for investment purposes," not to take over the companies.
Cogeco continues to be weighed down by its Portugal cable operations, even as it adds to its Canadian cable, high speed Internet access and telephony customer base in recent financial quarters.
Cogeco is controlled by its founding Audet family of Montreal through a multiple share structure, while Rogers Communications is controlled by the founding Rogers family of Toronto.