Pension fund to become anchor investor in Cogeco as part of the transaction
Caisse de dépôt et placement du Québec (CDPQ) has announced its $350 million investment in Cogeco Communications Inc. (Cogeco), among the top cable companies in North America, after the purchase of a block of shares previously held by Rogers Communications Inc. CDPQ will become an anchor investor in Cogeco as part of Rogers Communications Inc.'s complete divestment of its holdings.
Cogeco operates through its two business units, Cogeco Connexion in Canada and Breezeline in the US, to provide internet, video, and phone services in Québec, Ontario, and 13 states in the US.
“We're delighted by an even stronger engagement by the CDPQ. This transaction is a unique opportunity for us to build shareholder value while pursuing the delivery of our strategic plan,” says Philippe Jetté, president and chief executive officer at Cogeco Inc. and Cogeco Communications Inc.
The transaction isn’t a first between CDPQ and Cogeco. In 2013, CDPQ initially invested in the company by providing a CAD 50 million loan. In 2017, CDPQ contributed $315 million towards Cogeco’s acquisition of MetroCast cable systems in the US, which is notably its largest acquisition to date, valued at USD 1.4 billion.
“Already active with Cogeco Communications through past acquisitions, CDPQ is supporting the growth projects of this leading telecommunications company as connectivity needs continue to grow. This major share purchase, orchestrated by CDPQ, is key for the company and its plan to develop the North American market,” says Kim Thomassin, executive vice-president and head of Québec at CDPQ.
As of June 30, 2023, CDPQ's net assets totaled CAD $424 billion.
