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Rogers Communications secures financing for C$26 billion Shaw purchase
By Wendy Van Sickle
Columbus, Ohio, March 15 – Rogers Communications Inc. has secured debt financing to help fund its accusation of Shaw Communications Inc., according to a press release.
The parties have agreed for Rogers to acquire all of Shaw’s outstanding class A shares and class B shares in a transaction valued at about C$26 billion, inclusive of roughly C$6 billion of Shaw debt.
Rogers will also use cash on its balance sheet at the issuance of 23.6 million shares to the Shaw Family Living Trust to fund the acquisition.
The combined company will invest C$2.5 billion in 5G networks over the next five years across Western Canada and will create a headquarters for operations in Western Canada in downtown Calgary, Alta.
Under their agreement, Rogers has the right to cause Shaw to redeem its outstanding preferred shares on June 30 in accordance with their terms. Rogers has not exercised this right as of Monday.
Details of the debt financing were not disclosed in the news release.
Rogers Communications is a Toronto-based communications and media company. Shaw Communications is a Calgary, Alta.-based telecommunications company.
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