Cogeco to take on GTA with $200 million Toronto Hydro Telecom purchase

MONTREAL and TORONTO – After the close of trading on Friday, Cogeco Cable announced it has reached a definitive agreement to acquire all of the shares of Toronto Hydro Telecom, the telecommunications subsidiary of Toronto Hydro Corporation for $200 million. The deal is subject to certain conditions, including regulatory approval by the commissioner of Competition. The purchase price represents a 9.6 multiple of the projected fiscal 2008 EBITDA of THTI. In addition, Cogeco Cable will assume a working capital deficiency and liabilities of approximately $4 million. THT offers data communications and other telecommunications services such as Ethernet, private line, voice-over-Internet...