#Canada #Investment #Montreal #La Caisse #Cogeco Communications

La Caisse Plans to Sell Shares in Cogeco Communications

La Caisse, known previously as CDPQ, has announced its decision to divest a significant portion of its stake in Cogeco Communications. This move entails selling a block of shares that represents almost 11% of the company's outstanding subordinate shares. The shares will be sold at a gross price of $67.45 each, and it is anticipated that this transaction will yield gross proceeds of around $229 million.

Background on Cogeco Communications

Cogeco Communications is a major player in the telecommunications sector, providing a variety of services including internet, mobile, television, and home phone services to approximately 1.6 million customers across Canada and the United States. For many years, La Caisse has been a steadfast supporter of the company, having first invested in Cogeco back in 2013. Since then, it has actively participated in various significant transactions, enhancing its commitment to this investment.

Performance and Future Plans

Kim Thomassin, Executive Vice-President and Head of Québec at La Caisse, emphasized the continued confidence in Cogeco, stating, "La Caisse has supported Cogeco Communications since 2013 and firmly believes in its potential. Our participation in several major transactions underscores the confidence we have in the company and the direction it is taking." Given the positive trajectory of Cogeco, La Caisse's decision reflects its strategic approach to portfolio management, aiming to optimize and rebalance its holdings.

Despite reducing its shareholding, La Caisse will retain its status as the largest holder of subordinate shares in Cogeco Communications. This strategic decision is not just about divesting; it is part of a broader strategy to reinvest the generated funds into Quebec companies, focusing on their growth and development. La Caisse has always had a dual mandate of generating optimal long-term returns for its depositors while contributing to the economic development of Quebec.

Historical Investment Overview

La Caisse initially contributed $50 million to Cogeco in the form of a loan in 2013 and further solidified its investment by injecting approximately USD 315 million to acquire MetroCast cable systems in the United States in 2017. The recent transaction involving shares of Rogers Communications has highlighted La Caisse's ongoing commitment to the growth and sustainability of the telecommunications industry. These historical investments emphasize the organization's long-term vision and confidence in the telecommunications sector, greatly benefiting from technological advancements and market expansions.

Conclusion

La Caisse's decision to sell a portion of its stake in Cogeco Communications marks a strategic pivot in its investment portfolio while still emphasizing long-term growth potential in the sector. By reinvesting the proceeds back into Quebec's economic landscape, La Caisse not only sustains its commitment to its stakeholders but also promotes local business development. As the telecommunications landscape continues to evolve, La Caisse will likely explore new opportunities, affirming its position as a key player in sustaining Quebec's economic vitality.

For additional information about La Caisse’s investments and strategy, visit lacaisse.com or their social media pages on LinkedIn and Instagram.