Videotron and Rogers. . .
February 14, 2000 10:38
Rogers and Videotron Sign Definitive Merger Agreement
TORONTO--(BUSINESS WIRE)--Feb. 14, 2000--(TSE:VDO.)(TSE:RCI.A.) (TSE:RCI.B.)(NYSE:RG) Rogers Communications Inc. ("Rogers")and Le Groupe Videotron ltee ("Videotron") jointly announced today that the definitive merger agreement with respect to the previously announced merger has been executed. Under the transaction, each Videotron share will be exchanged for 0.925 of a Non-Voting Class B Share of Rogers. Videotron's equity holdings in TVA Group Inc. will be distributed to Videotron shareholders prior to the merger. The board of directors of Videotron has unanimously agreed to support the transaction and to recommend that they vote in favour of it.
Rogers also announced that members of the Chagnon family, the holders of a majority of the Videotron Multiple Voting Shares, have entered into a definitive support agreement with Rogers. Members of the Chagnon family have agreed to vote their shares in favour of the merger.
The merger will be effected by a plan of arrangement, which will require approval of Videotron's shareholders. A Shareholders' meeting will be called shortly to consider the merger. The merger is expected to be completed in April, 2000. Completion of the merger is subject to a number of conditions customary to transactions of this nature and to applicable stock exchange and regulatory approvals.
The merger will result in the creation of Canada's largest broadband communications company with North America's largest contiguous cluster of homes serviced by one integrated network. With over 5.1 million homes passed, 3.7 million cable customers, and 260,000 high-speed Internet access customers, the merged company will be by far Canada's largest cable company and among the top three suppliers in North America in terms of high-speed Internet access.
About Rogers Communications
Rogers Communications is Canada's national communications company engaged in cellular, Digital PCS, paging and data communications through Rogers AT&T Wireless; in cable television, high-speed Internet access and video retailing through Rogers Cable, and in radio and television broadcasting, tele-shopping, publishing and new media businesses through Rogers Media. About Le Groupe Videotron ltee
Le Groupe Videotron ltee is an integrated communications company with subsidiaries in telecommunications, cable television, Internet services, television production, broadcasting, electronic commerce, and remote surveillance. The Company also owns the largest chain of video stores in Quebec. Groupe Videotron is a leader in the development of new technologies, thanks in part to its experience with the Videoway interactive TV system. The Company has 5,700 employees.
Additional information on Rogers Communications is available at the Rogers Web page at rogers.com |
