Shaw Still on Board With Rogers Merger, Despite Family Feud
While reporting its financial results for the quarter, Shaw Communications Inc. said that it still plans on being acquired by Rogers Communications Inc. (RCI), and remains committed to closing the deal — reports Global News.
Shaw posted total revenue of $1.38 billion for the quarter ended August 31, up from $1.35 billion last year, along with a profit of $252 million (or 50 cents per diluted share). Shaw’s profit numbers grew over 40% year-over-year.
Brad Shaw, CEO, affirmed that the telco’s deal with RCI remains in place. As for the drama currently unfolding around RCI’s Board of Directors and the Rogers family that holds an overwhelming majority of its voting shares, Mr. Shaw declined to comment, noting it wouldn’t be appropriate.
Here’s a quick recap of the Rogers saga so far:
- In September, Edward Rogers attempted to replace RCI CEO Joe Natale with the company’s ex-CFO, Tony Staffieri. The power struggle ended with Staffieri being fired.
- Edward Rogers was dismissed from his position as chairman of the board last week after trying to remove 9 of the company’s top executives.
- Former chairman Edward Rogers used his influence as chair of the Rogers Family Trust that controls RCI to call for the sacking of five board members, but was blocked by sisters Melinda Rogers-Hixon and Martha Rogers, and mother Loretta Rogers, who also sit on the board. He has since incarnated a Board of Directors of his own.
- Mr. Rogers took to the courts this week, petitioning them to rule on the legitimacy of his board vs. the acting RCI board, and made some tall claims in an affidavit filed with a B.C. court.
Rogers Communications’ proposed $16 billion USD takeover of Shaw Communications is currently being reviewed by the Competition Bureau and more.