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Rogers Communications (RCI), Shaw Communications (SJR), the Shaw Family Living Trust, and Quebecor (QBCRF) announced an agreement to extend the outside date of the proposed merger of Rogers and Shaw and the acquisition of Freedom Mobile by Videotron Ltd., a wholly-owned subsidiary of Quebecor, to March 31, 2023. All parties remain committed to the pro-competitive transactions, and continue to work with Innovation, Science and Economic Development Canada to obtain approval of the transfer of spectrum licenses from Shaw to Videotron - in connection with the proposed acquisition of Freedom Mobile by Videotron. ISED approval must be obtained before the combination of Rogers and Shaw can proceed. On January 24, 2023, the Federal Court of Appeal dismissed the appeal by the Commissioner of Competition of the December 31, 2022, decision of the Competition Tribunal. The Tribunal had rejected the Commissioner's challenge of the proposed acquisition of Freedom Mobile by Videotron and the subsequent combination of Rogers and Shaw. In addition to the decisions of the Federal Court of Appeal and the Competition Tribunal, the Rogers-Shaw merger has already been approved by the common shareholders of Shaw and the Court of King's Bench of Alberta, and the transfer of Shaw's broadcasting licences to Rogers has been approved by the Canadian Radio-television and Telecommunications Commission. The Transactions are subject to customary closing conditions.
UBS analyst Batya Levi upgraded Rogers Communications to Buy from Neutral with a price target of C$75, up from C$64. UBS believes shares have an attractive risk-reward, supported by continuation of mid- to high-single digit growth for the standalone company and upside from deal accretion, and the firm expects the Shaw Cable deal to close in the next few weeks, the analyst tells investors in a research note. The firm sees the Shaw deal providing 30%+ accretion.
Canaccord analyst Aravinda Galappatthige raised the firm's price target on Rogers Communications to C$69 from C$68 and keeps a Buy rating on the shares.
TD Securities analyst Vince Valentini raised the firm's price target on Rogers Communications to C$78 from C$76 and keeps an Action List Buy rating on the shares.
Canaccord analyst Aravinda Galappatthige raised the firm's price target on Rogers Communications to C$69 from C$68 and keeps a Buy rating on the shares. The analyst said guidance was encouraging but with the closing of the Shaw Cable acquisition very much on the horizon, we believe investors would be focused on potential updates around synergies, strategy, and de-levering targets.
Sees adjusted EBITDA up 5%-8%. Sees CapEx ex. Shaw C$3.1B-C$3.3B. Sees FCF ex. Shaw C$2B-C$2.2B. The company said, "For the full-year 2023, we expect growth in total service revenue and adjusted EBITDA will drive higher free cash flow. In 2023, we expect to have the financial flexibility to maintain our network advantages and to continue to return cash to shareholders."
Reports Q4 revenue C$4.17B vs. C$3.92B last year. "We delivered strong results in the fourth quarter and for the full year," said Tony Staffieri, President and CEO. "We executed with discipline and delivered impressive growth in Wireless and Media, while setting solid growth targets for 2023. We remain committed to the Shaw transaction and delivering more choice, more value, and more innovation to Canadians."
Rogers Communications (RCI), Shaw Communications (SJR), the Shaw Family Living Trust, and Quebecor (QBCRF) announced an agreement to extend the outside date of the proposed merger of Rogers and Shaw and the acquisition of Freedom Mobile by Videotron Ltd., a wholly-owned subsidiary of Quebecor, to February 17, 2023. All parties remain committed to the pro-competitive transactions, which will deliver significant benefits to Canada and Canadian consumers. Innovation, Science and Economic Development Canada must approve the transfer of spectrum licenses from Shaw to Videotron - in connection with the proposed acquisition of Freedom Mobile by Videotron - before the combination of Rogers and Shaw can proceed. The companies continue to work with ISED to secure the final approval needed to close the pro-competitive transactions. In a ruling from the bench on January 24, 2023, the Federal Court of Appeal dismissed the appeal by the Commissioner of Competition of the December 31, 2022, decision of the Competition Tribunal. The Tribunal had rejected the Commissioner's challenge of the proposed acquisition of Freedom Mobile by Videotron and the subsequent combination of Rogers and Shaw. In addition to the decisions of the Federal Court of Appeal and the Competition Tribunal, the Rogers-Shaw merger has already been approved by the common shareholders of Shaw and the Court of King's Bench of Alberta, and the transfer of Shaw's broadcasting licences to Rogers has been approved by the Canadian Radio-television and Telecommunications Commission. The Transactions are subject to customary closing conditions.
Rogers Communications (RCI), Shaw Communications (SJR), the Shaw Family Living Trust, and Quebecor announced an agreement to extend the outside date of the proposed merger of Rogers and Shaw and the acquisition of Freedom Mobile by Videotron Ltd., a wholly-owned subsidiary of Quebecor, to February 17. All parties remain committed to the pro-competitive transactions, which will deliver significant benefits to Canada and Canadian consumers. Innovation, Science and Economic Development Canada must approve the transfer of spectrum licenses from Shaw to Videotron - in connection with the proposed acquisition of Freedom Mobile by Videotron - before the combination of Rogers and Shaw can proceed. The companies continue to work with ISED to secure the final approval needed to close the pro-competitive transactions.
Rogers Communications' (RCI) acquisition of Shaw Communications (SJR) cleared a potential hurdle as an appeals court shot down an effort by Canada's Competition Tribunal to reverse an earlier ruling that backed the deal, Randy Thanthong-Knight of Bloomberg reported. In December, the country's antitrust watchdog backed the proposed $14.9B transaction, dismissing a legal challenge from Competition Commissioner Matthew Boswell. Only after a couple of days, Boswell filed an appeal to nullify that ruling. Reference Link
