Altice USA offers to buy Canada's Cogeco in $8 bln deal (updated)

COGECO

02/09/2020 15:02

(Adds share movement, deal details, background)
    Sept 2 (Reuters) - Cable operator Altice USA Inc  ATUS.N 
said on Wednesday it offered to buy Cogeco Inc  CGO.TO  in a
C$10.3 billion ($7.88 billion) all-cash deal, aiming to snap up
the U.S. assets of the Canadian cable company.
    The U.S. cable sector has witnessed a wave of dealmaking in
recent years, as fierce price competition and significant
capital expenditure requirements put pressure on what have
traditionally been stable businesses with reliable cash flows.
    Altice USA also agreed to sell Canadian assets of Cogeco to
the latter's largest shareholder, Rogers Communications Inc
 RCIb.TO , and said it would own Cogeco's U.S. assets if the
deal goes through.    
    The New York-based company said it would pay about C$4.8
billion ($3.67 billion) for Cogeco's U.S. assets, namely
Atlantic Broadband, the country's ninth largest cable operator.
    Shares of Cogeco jumped nearly 30%, while Altice USA rose 5%
on the news. Rogers shares rose nearly 6%. 
    Cogeco first entered the U.S. market in 2012 when it bought
Atlantic Broadband for $1.36 billion, aiming to find growth
outside of Canada.
 
($1 = 1.3071 Canadian dollars)


($1 = 1.3082 Canadian dollars)

 (Reporting by Munsif Vengattil in Bengaluru; Editing by
Ramakrishnan M.)
 ((munsif.vengattil@thomsonreuters.com;))