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Rogers Communications Inc. (RCI)

  • Dec. 26, 2014, 2:06 PM
    • BCE (BCE +0.7%) and Rogers (RCI +1.1%) will each own 50% of Glentel following the closing of the BCE/Glentel deal. Rogers will pay half of BCE's purchase price in cash - BCE has committed to paying $594M for Glentel's equity, and assuming $78M in debt.
    • Following the purchase, Glentel will continue "operating as a standalone entity with independent management." The BCE/Glentel deal is still expected to close in Q1 2015.
    • Earlier: BCE, Rogers to jointly own Glentel's Canadian retail ops
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  • Dec. 26, 2014, 8:02 AM
    • Glentel, Canada's biggest independent phone retailer, will see its Canadian retail ops jointly owned by BCE and rival Rogers (NYSE:RCI) once BCE's $670M acquisition of Glentel closes.
    • The carriers proclaim the JV guarantees Canadians "will continue to be able to choose a wide variety of wireless products and services at GLENTEL's 494 retail locations across Canada."
    • Glentel also owns/operates/franchises 735 retail locations in the U.S., and 147 in Australia and the Philippines. Prior to the agreement, Rogers had been seeking a court injunction to block the BCE/Glentel deal.
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  • Sep. 15, 2014, 5:43 PM
    • VimpelCom (NASDAQ:VIP) is close to selling its stake in Canadian wireless carrier Wind Mobile Canada to Toronto-based Globalive Wireless Management for ~C$300M ($270M), with an announcement expected as soon as tomorrow, according to various reports.
    • A deal would cap VIP's struggle to exit the Canadian market following a lengthy regulatory spat over Canada's foreign investment rules.
    • A sale also would boost the Canadian government’s effort to create a fourth national wireless carrier to help foster competition and reduce mobile phone rates; the three biggest carriers, Rogers Communications (NYSE:RCI), BCE and Telus (NYSE:TU), together control 90% of the market.
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  • Jun. 13, 2014, 3:30 AM
    • BlackBerry (BBRY) has reached an agreement with EnStream, a joint venture between Canada's three biggest telecom companies — Bell (BCE), Rogers (RCI) and Telus (TU), to provide the infrastructure for a new mobile payment platform.
    • Under the three-year deal, EnStream will use BlackBerry infrastructure so banks and mobile operators can securely keep sensitive payment information on any smartphone able to use near field communication (NFC) tags.
    • NFC tags permit smartphones to communicate with other mobile devices or credit payment systems by tapping the two together.
  • Sep. 23, 2013, 10:05 AM
    • Rogers (RCI +1.6%) is acquiring Pivot Data Centers, owner of facilities in Calgary and Edmonton, from P-E firm Sverica International for C$155M ($150M). (PR)
    • Pivot's data centers specialize in colocation services. The colocation market has been growing at a decent pace, but is also starting to be pressured by the rise of public cloud infrastructure platforms such as Amazon Web Services and Windows Azure.
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  • Sep. 12, 2013, 2:55 PM
    • In spite of hedge fund opposition, Vodafone (VOD +0.7%) says 75% of Kabel Deutschland shares have been voted in favor of the mobile's carrier's €87/share offer  for the German cable provider, clearing the way for the deal to close.
    • Altogether, Vodafone is paying €10.7B ($14.2B) for Kabel (€7.7B in cash + $3B in assumed debt). The Verizon Wireless windfall should make the purchase pretty easy to digest. Vodafone has said the deal will grow the size of its German revenue base to €11.5B/year ($15.3B/year).
    • Separately, Vodafone U.K. CEO Guy Laurence is leaving to become the CEO of Canadian carrier Rogers (RCI -1.4%). U.K. enterprise exec Jeroen Hoencamp will replace Laurence.
    • Rogers' hiring of Laurence comes 7 months after the company' current CEO, Nadir Mohamed, announced plans to retire in Jan. '14. Laurence will take over the top job on Dec. 2.
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  • Sep. 3, 2013, 4:25 AM
    • Verizon Communications (VZ) has reportedly started syndicating a $61B one-year bridge loan that will support the company's $130B acquisition of 45% of Verizon Wireless from Vodafone.
    • Verizon intends to help pay for the deal with $49B in bonds and $14B in other debt, but might need the bridge loan if it can't issue the bonds by the time the transaction closes, which is expected in Q1 2014. The $63B in funding will replace the bridge loan.
    • JP Morgan (JPM), Morgan Stanley (MS), Bank of America (BAC) and Barclays (BCS) are leading the financing and underwriting the deal.
    • Meanwhile, Verizon has no plans to enter the Canadian market. The carrier had been linked with a couple of struggling wireless start-ups. The news should be positive for Canada's three largest telecom operators - BCE (BCE), Rogers Communications (RCI) and Telus (TU) - whose shares tumbled in response to Verizon's expansion plans in Canada and then climbed on initial reports of the Vodafone deal.
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  • Aug. 29, 2013, 12:01 PM
    • Rogers (RCI +2.8%), BCE (BCE +1.9%), and Telus (TU +2.8%) are all posting solid gains after Bloomberg reported Verizon is in advanced talks to buy Vodafone's 45% Verizon Wireless stake for $130B and plans to partly finance the deal by raising $60B in debt, and Vodafone subsequently confirmed it's talking to Big Red.
    • Investors are betting the deal's enormous price tag will make Verizon (VZ +3.4%) hold off on its Canadian expansion plans for now. Verizon already had $49.8B in debt on its balance sheet at the end of Q2, offset only a little by $5.7B in cash/investments.
    • The Globe and Mail recently reported Verizon has decided to hold off on making bids for smaller Canadian carriers until a January spectrum auction concludes.
    • Meanwhile, Nomura believes even a $130B deal for Vodafone's stake would be accretive for Verizon, since it would still only value Verizon Wireless at 8.5x 2013E EBITDA. The firm thinks Verizon would trade at 7x 2014E EBITDA and 2.3x net debt/EBITDA (a ratio deemed "manageable") following a $130B deal half-paid in cash.
    • Judging by today's move in Verizon shares, investors also think the positives outweigh the negatives. Is Verizon getting a good deal on a premium asset - while Verizon's wireline revenue continues to slowly decline, Verizon Wireless is still growing and gaining share - or is Vodafone smartly selling high as U.S. mobile growth slows and competition intensifies?
  • Aug. 15, 2013, 9:18 AM
    • Sources tell The Globe and Mail, which appears to have a good handle on Verizon's (VZ) Canadian expansion plans, Verizon has decided to delay making bids for smaller local carriers Wind (65%-owned by VIP) and Moblicity until a January spectrum auction is finished.
    • The paper adds Verizon "will focus on deciding whether to participate" in the auction. The change of heart that suggests the carrier could be having second thoughts about expanding north, or might simply be trying to drive a harder bargain (either with the carriers or regulators).
    • A previous report claimed Verizon had made a ~$700M offer for Wind, and had held talks with Moblicity.
    • BMO has argued a Canadian acquisition would pay for itself just via roaming fee savings. Incumbent Canadian carriers (BCE, RCI, TU) have been less than thrilled about Verizon's plans, and apparent government support for them.
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  • Jul. 29, 2013, 12:01 PM
    • A group representing 150 Canadian CEOs has sent a letter to PM Stephen Harper asking him to reconsider new mobile investment rules they claim would give would-be entrant Verizon (VZ +0.6%) and unfair edge over incumbents BCE (BCE +0.3%), Rogers (RCI +1.1%), and Telus (TU +0.9%).
    • The incumbents have already been aggressively lobbying Ottawa to fix perceived loopholes in telecom policy they claim benefit outside giants, rather than smaller carriers.
    • Verizon, possibly motivated by the potential for huge roaming fee savings, is believed to be eying the purchase of struggling Canadian carriers Wind and Mobilicity, whom the incumbents can't acquire due to spectrum rules.
    • Big Red is also considering taking part in a Jan. '14 spectrum auction; the rule changes would allow it to buy more spectrum than the incumbents.
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  • Jun. 28, 2013, 12:29 PM
    The Canadian government says it will review all carrier spectrum transfers, a decision that appears spurred by recent spectrum purchase deals (I, II) from Rogers (RCI +1.3%) and Telus (TU +2.9%). The decision comes shortly after the government blocked Telus' attempt to buy smaller rival Moblicity; Moblicity's spectrum was the main prize in that deal. Rogers, Telus, and BCE (BCE +2.8%) are all trading higher today after slumping earlier this week on a report Verizon had bid $700M for Wind Mobile.
  • Jun. 17, 2013, 9:33 AM
    Verizon (VZ) wants to enter the Canadian mobile market, and has "held exploratory talks" with minor local carrier Wind, The Globe and Mail reports. The Canadian government, fresh off relaxing foreign investment limits, is said to view Verizon "as the most likely foreign option" for bolstering competition in a market dominated by Telus (TU), Rogers (RCI), and Bell (BCE); ideally, Verizon would buy a small local carrier, then take part in upcoming spectrum auctions. Russia's VimpelCom (VIP), the biggest investor in Wind, wants to sell its stake for $500M+. Telus' efforts to buy another small rival, Moblicity, were recently blocked by Ottawa.
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  • Jan. 14, 2013, 5:24 PM
    Shaw (SJR) is selling its Mountain Cablevision unit, which provides cable TV services in the Hamilton, Ontario area, as well as the option to acquire wireless spectrum licenses for several Canadian provinces, to Rogers (RCI) for $700M in cash. Separately, Shaw is paying Rogers $59M to acquire its 33.3% stake in the companies' jointly-owned TVtropolis channel.
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  • Aug. 24, 2012, 4:13 PM
    Canadian cable provider/mobile carrier Rogers (RCI) is buying sports broadcaster and app developer Score Media (SCRFF.PK), The Globe and Mail reports. Score Media, best known for its popular ScoreMobile iOS and Android apps, rose 46.7% in Toronto before getting halted. The company, whose last trade gave it a market cap of $125.8M, has reportedly been looking for a buyout price of $200M.
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  • Mar. 16, 2012, 4:52 PM
    As Canadian telco BCE makes a big media purchase, the Canadian government announces it's lifting restrictions on foreign investment in the telecom sector. The move could lead AT&T (T) and/or Verizon (VZ) to mull investments in Canadian carriers; AT&T has been evaluating its options for deploying its cash since the T-Mobile deal fell apart.
  • Dec. 9, 2011, 11:34 AM
    Bell Canada parent BCE (BCE +0.3%) and Rogers Communications (RCI -0.4%) team up to buy a 79.53% stake in Maple Leaf Sports & Entertainment, owner of hockey’s Toronto Maple Leafs and basketball's Toronto Raptors, for C$1.32B (US$1.29B) from Ontario Teachers’ Pension Plan.
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Company Description
Rogers Communications Inc is a communications and media company. It provides wireless network technologies and services, conventional and specialty television networks.consumer magazines andcable television services.
Sector: Technology
Country: Canada