Rogers-Shaw deal sees new development: How are RCI.B & SJR.B stocks?

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Rogers-Shaw deal sees new development: How are RCI.B & SJR.B stocks?

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 Rogers-Shaw deal sees new development: How are RCI.B & SJR.B stocks?
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Highlights

  • Rogers Communications (TSX: RCI.B), on Monday, March 7, said that it has priced two private offerings to finance its pending acquisition of Shaw Communications (TSX: SJR.B).
  • Rogers reported a net profit of C$ 405 million in the fourth quarter of fiscal 2021, down by 10 per cent over the previous year's fourth quarter.
  • Shaw increased its net profit by 20.2 per cent year-over-year (YoY) to C$ 196 million in the first quarter of fiscal 2022.

Rogers Communications (TSX: RCI.B), on Monday, March 7, said that it has priced two private offerings to finance its pending acquisition of Shaw Communications (TSX: SJR.B).

One of the offerings includes five series of US dollar denominated senior notes, total worth US$ 7.05 billion, while the other comprises four series of Canadian dollar denominated senior notes, valued at C$ 4.25 billion in total. Both the private offerings will close this Friday, March 11.

Let us look at the overall performance of Rogers and Shaw.

Also read: TELUS (TSX: T) & BCE: 2 top Canadian telecom stocks under $70

Rogers Communications Inc (TSX: RCI.B)

Rogers reported a net profit of C$ 405 million in the fourth quarter of fiscal 2021, down by 10 per cent over the previous year's fourth quarter.

Its stocks galloped by about 18 per cent in the last three months and closed at C$ 69.52 on Monday, with 1 million shares exchanging hands. The telecom scrip clocked a 52-week high of C$ 69.61 during the trading session on Monday.

Rogers Communications (TSX: RCI.B) Q4 FY2021 results

 Shaw Communications Inc (TSX: SJR.B)

Shaw increased its net profit by 20.2 per cent year-over-year (YoY) to C$ 196 million in the first quarter of fiscal 2022. The C$ 19-billion market cap company has a return on equity (ROE) of 17.06 per cent and a price-to-earnings (P/E) ratio of 19.10 at the time of writing this.

Shaw stock closed at C$ 38.21 apiece on Monday, having traded flat with 1.4 million shares exchanging hands during the session.

Also read: Cargojet (TSX: CJT) sees revenue zoom 26% in Q4. A cargo stock to buy?

 Bottomline

Rogers Communications agreed to purchase the rival telecom firm last year. However, the deal is still pending regulatory scrutiny and, if completed, would be the biggest deal in the telecommunication space. 

The Canadian government reportedly said that if the two firms close the deal, Rogers will not be allowed to purchase all of Shaw's wireless portfolio.

Investors should attentively access the latest developments and measure the risk-return potential while investing in Rogers and Shaw.

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