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Rogers Communications to acquire Call-Net in all-stock transaction

Rogers Communications Inc. and Call-Net Enterprises Inc. today entered into a definitive agreement under which Roge...


May 11, 2005  


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Rogers Communications Inc. and Call-Net Enterprises Inc. today entered into a definitive agreement under which Rogers will acquire 100% of Call-Net in a share-for-share transaction plan.

Under terms of the agreement, Call-Net Common and Class B shareholders will receive a fixed exchange ratio of one RCI Class B Non-voting share for each 4.25 outstanding shares of Call-Net, representing a fully diluted equity value of approximately $330 million.

As of March 31, Call-Net had senior secured notes due 2008 of $269.8 million outstanding and cash and short-term investments of $79.6 million.

“This acquisition will significantly jumpstart and expand our ability to provide customers with a full suite of service solutions that deliver the simplicity, quality and value they want in one package, on one bill, from one provider,” said Ted Rogers, president and CEO of Rogers Communications Inc.

“This positions us immediately to offer primary line telephone service across our residential and business bases of wireless and cable customers."

Bill Linton, president and CEO of Call-Net, said the company shares a common heritage with Rogers as a catalyst in bringing competition to the Canadian communications markets.