Rogers to buy spectrum, cable company from Shaw
By Adnews Staff
Rogers Communications has signed agreements to acquire a number of assets from Shaw Communications. The agreements include an option to purchase Shaw's unused wireless spectrum holdings and Hamilton-based cable company Mountain Cablevision. The deal is expected to cost Rogers approximately $700 million when completed. In addition Shaw will acquire a one-third interest in specialty channel TVtropolis and will begin negotiations with Rogers to provide certain services in western Canada. Shaw's AWS spectrum holdings include 20 MHz in BC, Alberta and Manitoba, as well as 10 MHz in parts of BC, Alberta, Saskatchewan and northern Ontario. Rogers can only exercise its purchase option with the approval of Industry Canada and the Competition Bureau. Such a purchase would likely take place in late 2014, according to the companies. The Mountain Cablevision transaction is expected to close in the first half of this year. The company offers cable television, Internet and telephone services in southern Ontario. The TVtropolis portion of the deal will give Shaw 100% ownership of the specialty service. This part of the deal is also expected to close in the first half of this year. "The agreements will benefit businesses and consumers across the country and fit squarely within our focused, strategic game plan," said Nadir Mohamed, president and CEO of Rogers Communications. "We're investing in spectrum to ensure our customers continue to enjoy the incredibly fast speeds and throughput they crave, while ensuring our continued network leadership. We're also strengthening our cable portfolio by acquiring a valuable cable business which complements our existing Ontario cable system allowing us to deliver even more value for our customers and shareholders."