Business
Cogeco Cable completes acquisition of Cabovisao - Televisao por Cabo, S.A.
Cogeco Cable completes acquisition of Cabovisao - Televisao por Cabo, S.A..
About this update from Cogeco Communications Inc.
[{"type":"text","content":"\n\n\n\n\nMONTREAL, Aug. 3 /CNW Telbec/ - Cogeco Cable Inc. (TSX: CCA), the second\nlargest cable operator in both Ontario and QuDebec based on the number of basic\ncable service customers served, announced today that it has completed its\npreviously announced acquisition of Cabovisao - Televisao por Cabo, S.A\n(Cabovisao), the second largest cable operator in Portugal.\n\"The completion of this acquisition represents a significant step for\nCogeco Cable in our strategy to secure growth opportunities for our\nshareholders, \" said Louis Audet, president and chief executive officer of\nCogeco Cable. \"Today, we significantly increase our knowledge by welcoming\nmore than 500 experienced employees from Cabovisao - individuals who know the\nPortuguese marketplace and Cabovisao products. As a result of the acquisition,\nwe also now have a top of the class two-way network serving our Portuguese\nclients on which we can layer new services to fulfil their current and future\ntelecommunications needs.\"\nMr. Audet continued: \"This acquisition is in accordance with the external\ngrowth strategy announced by Cogeco Cable last October. We are now squarely\nfocused on quickly seizing the attractive opportunities this transaction has\ncreated for us to increase top-line growth, to increase customer satisfaction\nand to solidify our competitive position while soundly controlling cost. With\nthe Cabovisao acquisition now complete, Cogeco Cable is a stronger, more\nbroadly based company than ever before. We are looking forward to delivering\non the promise of this acquisition and to building value for our\nshareholders.\"\nThrough acquisition subsidiaries, Cogeco Cable had purchased on an agreed\nenterprise value of approximately 465 million euros, all the shares and all\nsenior secured debt of Cabovisao, and provided for the reimbursement of\ncertain other specified liabilities of Cabovisao. The final purchase price\nwill be determined following completion of a post-closing working capital\nadjustment.\nAs anticipated, Cogeco Cable Inc. concluded as of July 28, 2006 an\namended and restated credit agreement providing for a CDN $900 million 5-year\nbank credit facility with a group of financial institutions. This facility is\ncomposed of three tranches: a revolving tranche of CDN $ 725 million maturing\non July 28, 2011; a non-revolving tranch...