Cogeco’s major investor says refusal of acquisition proposal ‘definitive’

The Audet family says its refusal is not a negotiating position


Cogeco’s major investor, the Audet family, has reiterated that it is not interested in the “unsolicited” acquisition proposal from Rogers and Altice USA.

The designated representative of the Audet family, Louis Audet, released a statement on September 7th outlining that the shares are not for sale.

“I want to provide absolute clarity for stakeholders regarding our intentions in response to the recent unsolicited proposal to acquire Cogeco. Our shares are not for sale. And let me be clear, our refusal is not a negotiating position, it is definitive,” Audet wrote in the statement.

It’s worth noting that once the Audet family stated it was not interested in the offer last week, some analysts said that the rejection may have been a bargaining tactic. However, this statement indicates that the Audet family is not looking to negotiate.

“Our father launched this company 63 years ago in Trois-Rivières, Quebec, planting the seeds for a business that is an incredible growth story today. The company went public in 1985, and annual revenues at that time had grown to $20 million. Today, they are $2.5 billion,” the statement reads.

“The business is well-managed, growing, strategically positioned for the evolving and dynamic future of the telecommunications and media industries.”

On September 4th, Rogers released a statement outlining its case for the Cogeco acquisition. The carrier stated that it would keep Cogeco’s headquarters and management teams in Quebec.

“We are committed to investing in high-quality jobs, delivering both wireless and broadband next-generation technology and helping close the connectivity gap in rural and remote Quebec communities. Now more than ever, we want to grow our local presence here and help to contribute to a strong, vibrant Quebec,” the carrier stated.

Altice USA, an American cable company, tabled a $10.3 billion CAD bid for Cogeco last week. Altice USA had reached an agreement with Rogers to sell Cogeco’s Canadian assets for $4.9 billion to the carrier if the acquisition is successful.

Source: Louis Audet