Shaw Communica Stock Price, News & Analysis

Quebecor has successfully completed its acquisition of Freedom Mobile from Shaw Communications, establishing a new major player in the Canadian wireless market. This acquisition, valued at $2.85 billion, includes a cash payment of $2.17 billion and assumes certain debts. With a customer base of over 3.5 million and approximately 7,500 employees, the merger is expected to enhance competition, leading to lower service prices by at least 20% over ten years. Videotron also commits to a $150 million investment in network upgrades, aiming for 90% 5G access within two years. The acquisition is seen as transformative for consumers.

Rogers Communications and Shaw Communications announced the extension of their merger's closing date to April 7, 2023, following final regulatory approval. The merger aims to enhance network coverage and improve connectivity for underserved communities. Rogers has committed to invest $6.5 billion in infrastructure and services across Western Canada, creating 3,000 new jobs. This merger follows significant investments of over $40 billion by both companies in the past decade. The transaction also involves the sale of Shaw's Freedom Mobile to Videotron, facilitating an anticipated stronger competitive position in the telecom market.

On March 31, 2023, Rogers Communications, Shaw Communications, and Quebecor announced the approval from the Minister of Innovation, Science and Industry for the transfer of Shaw’s wireless spectrum licenses to Videotron, enabling the acquisition of Freedom Mobile. The transactions, including the merger of Rogers and Shaw, have received all necessary regulatory and shareholder approvals, with an extended closing date of April 7, 2023. This marks a significant milestone for the companies as they navigate the regulatory landscape. However, uncertainties remain regarding potential litigation and the realization of anticipated benefits from the transactions.

Shaw Communications Inc. has declared a monthly dividend of $0.09875 per Class B Non-Voting Participating Share and $0.098542 per Class A Participating Share, payable on March 30, 2023, to holders of record by March 15, 2023. The dividends are categorized as eligible for tax benefits under Canadian law. Additionally, Shaw has suspended its dividend reinvestment plan effective February 13, 2023, meaning that future dividends will be paid in cash to all shareholders. Furthermore, Shaw received an extension allowing it to hold its 2023 annual general meeting by May 31, 2023. This is contingent upon the closure of the Rogers-Shaw merger.

Rogers Communications, Shaw Communications, and Quebecor have agreed to extend the merger timeline to March 31, 2023. This extension is aimed at securing necessary approvals for the transfer of spectrum licenses related to Shaw's acquisition of Freedom Mobile by Videotron, a subsidiary of Quebecor.

The merger has received prior approvals from both Shaw's shareholders and the Canadian Radio-television and Telecommunications Commission. Despite a favorable ruling from the Federal Court of Appeal regarding competition challenges, the completion of these transactions remains contingent on the approval from Innovation, Science and Economic Development Canada (ISED).

Shaw Communications has declared monthly dividends of $0.09875 per Class B Non-Voting Participating Share and $0.098542 per Class A Participating Share. These dividends, payable on February 27, 2023, are for shareholders on record as of February 15, 2023. Designated as “eligible” dividends under the Income Tax Act (Canada), they will not be paid if the Effective Date of the Arrangement with Rogers Communications occurs before the record date. Shaw is a key Canadian connectivity provider, offering a range of services including broadband internet and digital phone.

Rogers Communications, Shaw Communications, and Quebecor announced an extension to February 17, 2023, for the merger and acquisition activities involving Shaw and Freedom Mobile by Videotron. The agreement highlights ongoing commitments to pro-competitive transactions benefiting Canadian consumers. Key approvals from the Competition Tribunal and Federal Court have been achieved, while the transfer of Shaw's broadcasting licenses is approved by the CRTC. The companies continue to seek approval from ISED. Forward-looking statements are included, emphasizing the uncertainty and risks involved in completing these transactions.

Rogers Communications, Shaw Communications, and Quebecor announced progress regarding the merger and acquisition of Freedom Mobile. The Federal Court of Appeal upheld the decision of the Competition Tribunal, dismissing an appeal from the Commissioner of Competition against the acquisition. Regulatory approvals are pending, particularly from the Minister of Innovation, Science and Industry. The transactions aim to bolster competition in the Canadian telecom sector, with Rogers and Shaw's combination already receiving shareholder and regulatory backing. However, uncertainties remain regarding the final approvals and completion timelines for the transactions.

Shaw Communications reported a 1.2% decrease in consolidated revenue to $1.37 billion for Q1 FY2023, alongside a 14.3% drop in net income, totaling $168 million. Adjusted EBITDA fell 2.5% to $617 million, with a margin of 45%. Free cash flow declined significantly by 55.7% to $113 million, attributed to increased capital expenditures and lower revenue. Despite challenges, the company added 13,800 wireless customers, with wireless revenue rising 3.9% to $345 million. The Rogers-Shaw transaction is pending regulatory approvals, with a Federal Court hearing scheduled for January 24, 2023.