Rogers Communications Inc. is trying to buy Shaw Communications Inc. and must sell its wireless division, Freedom Mobile, to approve the takeover of the Federal Bureau of Competition and the Ministry of Innovation, Science and Economic Development (ISED). Spencer Colby / The Globe and The Mail
The first nations of British Columbia, a large pension plan and an infrastructure fund teamed up with the owner of Vancouver Canucks to bid for Freedom Mobile, while Rogers Communications Inc. RCI-BT is trying to find a buyer for the country’s fourth-largest mobile phone company.
The $ 10 billion LiUNA pension fund from Central and Eastern Canada, along with Musqueam Capital Corp., Tsleil-Waututh Nation and $ 6 billion in infrastructure investor Fengate Asset Management, made an offer for Freedom and presented it to the federal federation last week. . government officials for approval, according to sources working on the acquisition. The Globe and Mail did not identify the sources because they were not authorized to speak on behalf of the consortium.
The group also includes the Vancouver-based Aquilini Equities, a division of the billionaire’s Aquilini family empire, which owns the NHL team and its home, Rogers Arena, plus real estate, technology and agriculture.
Rodgers is trying to buy the owner of Freedom Shaw Communications Inc. SJR-BT for $ 26 billion and must sell its wireless division to the Federal Bureau of Competition and the Department of Innovation, Science and Economic Development (ISED) to approve the takeover. Last Friday, the bureau applied to block the Shaw deal on the grounds that it would reduce competition in the wireless services market, which it called a “substantial service”.
Freedom is expected to reach $ 4 billion, with rural internet provider Xplornet Communications Inc. and Quebecor Inc. QBR-BT is also negotiating for business. Rodgers, Shaw and all potential buyers are trying to determine what the competition keeper and ISED want from the next Freedom owner.
In its presentation to federal officials, the LiUNA consortium highlighted the deep pockets and telecommunications experience of its members. The government said it wanted an experienced telecommunications owner for Freedom, which has 2.1 million customers in British Columbia, Alberta and Ontario and had sales of $ 655 million in the first six months of the fiscal year.
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In the last two years, the Toronto-based Fengate, backed in part by LiUNA, has acquired a network of telecommunications towers covering nine US states. The company has two decades of experience as an infrastructure owner and also invests in real estate and private equity.
Musqueam Capital is the economic development division of the Musqueam Indian Band, and its assets include a stake in MST Development Corp., which owns six properties in Vancouver worth more than $ 1 billion. Tsleil-Waututh are also partners in MST Development.
Federal Liberals support local businesses as part of their reconciliation initiative. In April, ISED Minister Francois-Philippe Champagne announced a series of grants under the local intellectual property program.
Musqueam Capital and Tsleil-Waututh are also partners with Aquilini Real Estate in a 40-acre property in Burnaby, British Columbia
Rodgers’ ties to the Aquilini family date back to 2009, when Rodgers Vice President Phil Lind negotiated new rights to the Kanux family home with Francesco Aquilini, chairman of the Canux family, and one of the three brothers who run the family farms. , worth approximately $ 3 billion. The family-owned GM Place, owned by Aquilini, became the Rodgers Arena in 2010.
Rodgers, Shaw and members of the consortium declined to comment on the sale of Freedom. Bankers advising the process said all bidders had signed a non-disclosure agreement.
Other potential owners of Freedom include New Brunswick-based Xplornet and its supporter, New York-based private investment firm Stonepeak Infrastructure Partners. Stonepeak owns US optical networks and telecommunications towers and recently raised a $ 14 billion fund to acquire new businesses.
The Montreal-based Quebecor has successfully merged its wireless, cable and media businesses and become a major player in the Quebec mobile phone market. CEO Pierre Carl Pelado has made clear his interest in acquiring Freedom and building a national wireless network following the announcement of the Shaw’s takeover in March 2021. However, Rodgers has only begun talks with Quebec in recent weeks, according to The Globe.
Quebec has a market capitalization of $ 6.8 billion and relatively little debt on its balance sheet compared to competitors such as Rodgers, and analysts say Mr Pelado has the capital to acquire Freedom if given the chance.
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