(Reuters) – Cable operator Altice USA Inc (ATUS.N) said on Wednesday it offered to buy Cogeco Inc (CGO.TO) in a C$10.3 billion ($7.88 billion) all-cash deal, aiming to snap up the U.S. assets of the Canadian cable company.
The U.S. cable sector has witnessed a wave of dealmaking in recent years, as fierce price competition and significant capital expenditure requirements put pressure on what have traditionally been stable businesses with reliable cash flows.
Altice USA also agreed to sell Canadian assets of Cogeco to the latter’s largest shareholder, Rogers Communications Inc (RCIb.TO), and said it would own Cogeco’s U.S. assets if the deal goes through.
The New York-based company said it would pay about C$4.8 billion ($3.67 billion) for Cogeco’s U.S. assets, namely Atlantic Broadband, the country’s ninth largest cable operator.
Shares of Cogeco jumped nearly 30%, while Altice USA rose 5% on the news. Rogers shares rose nearly 6%.
Cogeco first entered the U.S. market in 2012 when it bought Atlantic Broadband for $1.36 billion, aiming to find growth outside of Canada.
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