Rogers Communications has signed a deal to buy Shaw Communications in a deal valued at $26 billion, including debt.
Under the plan, Rogers will pay $40.50 in cash for each of Shaw’s issued and outstanding class A and class B shares. Shaw’s class B shares closed at $23.90 on the Toronto Stock Exchange on Friday.
As part of the transaction, the companies said Rogers will invest $2.5 billion in 5G networks over the next five years across Western Canada.
Rogers also says it will create a new $1 billion fund dedicated to connecting rural, remote and Indigenous communities across Western Canada to high-speed internet service.
The deal, which is subject to other customary closing conditions as well as approvals from Canadian regulators, is expected to close in the first half of 2022.
More to come.