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Rogers extends deadline to shut $26-billion takeover of Shaw – Enterprise Information

Rogers Communications Inc. has prolonged the deadline of its $26-billion proposed merger with Shaw Communications Inc. to Dec. 31 as the corporate’s second quarter revenue jumps.

The deadline for the deal to shut was beforehand prolonged to July 31.

On the corporate’s earnings name with analysts Wednesday, CEO Tony Staffieri stated the choice to maneuver the date displays the dedication it and Shaw must get the deal completed.

“We wished to set a date that made it clear that we’ve that dedication,” he stated.

Despite the fact that the telecom big stays assured that the deal will shut, particularly with the extra time, it says it does have “methods” obtainable within the occasion that the transaction faces additional hurdles.

Rogers, Shaw and Quebecor Inc. nonetheless want to achieve a definitive settlement on the sale of wi-fi provider Freedom Cell as properly — a $2.85-billion deal that’s meant to assist appease regulators mulling the Rogers-Shaw merger. An settlement was extensively anticipated to come back earlier this month.

Rogers stated it’s persevering with to work with Quebecor on this settlement and to deal with the “complexities” related to the sale.

The Rogers-Shaw deal has obtained approval from the Canadian Radio-television and Telecommunications Fee, however nonetheless must get the greenlight from the Competitors Bureau and Innovation, Science and Financial Improvement Canada.

Rogers stated Wednesday that it recorded a rise in revenue and gross sales in its newest quarter as its wi-fi service income elevated by double digits.

The cable, wi-fi and media firm says it earned $409 million in its second quarter or 76 cents per diluted share, up 35 per cent from $302 million and 60 cents per share a 12 months earlier.

Adjusted earnings had been $463 million or 86 cents per share, in contrast with $387 million or 76 cents per share within the second quarter of 2021.

Revenues for the three months ended June 30 had been $3.87 billion, up from $3.58 billion the 12 months earlier than as wi-fi service income soared 11 per cent.

Cable service income elevated by three per cent within the second quarter primarily on account of service pricing modifications and will increase in its web subscriber base whereas media income elevated by 21 per cent on account of larger promoting and Blue Jays revenues.

Rogers additionally stated that the client credit associated to its July 8 community outage are estimated to price $150 million and shall be included in its third quarter outcomes.

In a information launch, Staffieri stated the corporate’s efficiency Displays “the unimaginable arduous work by our wi-fi, cable, and media groups as we proceed to recuperate from the impacts of the pandemic.”

“Within the coming quarters, we’ll proceed to concentrate on delivering further enhancements as we construct on these outcomes, whereas additionally working arduous to regain the belief of our clients following our latest community outage.”