TORONTO-Canadian telecommunications provider Rogers Communications Inc. said it has entered into a letter of agreement with AT&T Wireless Services Inc. to facilitate the possible sale of AWS’ 34-percent stake in Rogers Wireless Communications Inc. The sale is related to AWS’ pending acquisition by Cingular Wireless L.L.C. that would result in a change of ownership at Rogers Wireless.
Under terms of the letter, RCI has agreed to assist the sale of AWS’ stake in Canada and the United States before Sept. 30 that would result in RCI increasing its stake from the current 69.4 percent to 100 percent. AWS’ stake is part of the JVII General Partnership between the two companies and currently includes 48.6 million Class A Multiple Voting shares and Class B Restricted Voting shares of Rogers Wireless.
The agreement also provided RCI with the right to purchase all of the shares being offered if JVII proceeds with the proposed transaction at a sale price equal to or less than $27.98 per share. RCI said it has not made a decision regarding the exercise right.
RCI and Rogers Wireless added that they are continuing to consider various other corporate initiatives, including the possible acquisition of wireless rival Microcell Telecommunications Inc., which currently is being courted through an unsolicited $780 million offer from Telus Corp.
