Canadian Press

Under the agreement, Rogers Shaw would pay cash per share to holders of Class A and B shares of $ 40.50, while the Shaw family would receive a portion of their payments in Rogers shares.

Shaw’s Class B shares closed Friday at the Toronto Stock Exchange at $ 23.90.

As part of the deal, the companies said that Rogers would invest $ 2.5 billion in 5G networks in Western Canada over the next five years.

Rogers said it would create a new billion dollar fund dedicated to connecting high-speed Internet service to rural, remote and indigenous communities in Western Canada.

“The alliance of these two big companies will create more jobs and encourage more investment in the west of the country, tie people and businesses together, provide exceptional infrastructure and services across the country, encourage a stronger competition and consumers. Will provide more options. ” And business here, ”Rogers CEO Joe Natale said in a statement.

The amalgamated company will create a Western Regional Head Office in Calgary, where the Western President of Operations and other senior management positions will be established.

Shaw’s president and CEO Brad Shaw said the transaction would generate positive benefits for generations to come.

“The combination of these two great companies, while providing tremendous value to our shareholders, also makes a truly national supplier capable of investing more resources to require wired and wireless networks in Canada. , Brad Shaw said in a statement.

Rogers said it has enough committed funds at its disposal to consider the cash, while about 60% of the Shaw family shares will be exchanged for 23.6 million Class B shares.

Another director appointed by Brad Shaw and the Shaw family – who would become one of Rogers’ largest shareholders – would be appointed to the Rogers board of directors.

The transaction, which is subject to approval from Canadian regulators, along with other customary closing conditions, is expected to close in the first half of 2022.