Major telecom company offloads shares to accelerate deleveraging

  • Rogers Communications sells all subordinate voting shares in Cogeco and Cogeco Communications
  • Shares sold to Quebec’s provincial pension plan manager for $610.7 million
  • Price per share: C$46.91 for Cogeco, C$41.40 for Cogeco Communications
  • Rogers Communications currently owns nearly 6 million and 10.7 million shares of both, respectively
  • Move will help accelerate Rogers Communications’ deleveraging plans

Rogers Communications has announced the sale of all its subordinate voting shares in Cogeco and Cogeco Communications to Quebec’s provincial pension plan manager for $610.7 million. The shares will be sold at a price of C$46.91 per Cogeco share and C$41.40 per Cogeco Communications share. Currently, Rogers Communications owns nearly 6 million and 10.7 million shares of both companies, respectively. This move is expected to help accelerate Rogers Communications’ deleveraging plans.

Public Companies: Rogers Communications (TSE:RCI.B), Cogeco (TSE:CGO), Cogeco Communications (TSE:CCA), Caisse de depot et placement du Quebec (N/A)
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Factuality Level: 8
Justification: The article provides factual information about Rogers Communications selling its subordinate voting shares in Cogeco and Cogeco Communications to Quebec’s provincial pension plan manager. It includes details about the price per share and the number of shares owned by Rogers Communications. The article also mentions the closing prices of Cogeco and Cogeco Communications shares on Monday. Overall, the information provided seems accurate and objective.

Noise Level: 8
Justification: The article provides a brief summary of Rogers Communications’ decision to sell its shares in Cogeco and Cogeco Communications to Quebec’s pension plan manager. However, it lacks in-depth analysis, evidence, or insights into the long-term trends or consequences of this decision. It also does not provide any information on systems that can withstand or benefit from shocks or unexpected events. Overall, the article is mostly a straightforward reporting of the transaction without much added value or critical analysis.

Financial Relevance: Yes
Financial Markets Impacted: The sale of Rogers Communications’ shares in Cogeco and Cogeco Communications may impact the stock prices of these companies and potentially the broader telecom sector in Canada.

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to a financial transaction involving the sale of shares, which is relevant to financial topics. There is no mention of an extreme event in the article.

Reported publicly: www.marketwatch.com