No details yet as to what the alleged breaches are
By Ahmad Hathout
Videotron is suing Rogers for $91 million over alleged breaches of contract in the sale of Freedom Mobile.
The six-page notice of action, which mentions only the claimed breaches without detail, was filed in Ontario Superior Court last Thursday — the two-year anniversary of the closing of Rogers’s acquisition of Shaw and Videotron’s purchase of Freedom.
Videotron is asking the court to order Rogers to “perform their obligations under the Share Purchase Agreement dated August 12, 2022,” which lays out the terms for Videotron buying the outstanding shares of Freedom Mobile, “including indemnification by the Defendants of $91,000,000 owing to the Plaintiff.”
Videotron alleges Rogers unjustly enriched itself and owes it “damages for breach of contract, breach of duty of good faith and/or negligent misrepresentation in the amount of $91,000,000.”
Videotron did not respond to a request for comment as to what precisely the alleged breaches are. Rogers declined to comment.
More details should emerge in Videotron’s statement of claim, which had not yet been received by the court when Cartt obtained the notice of action.
The parties’ share purchase agreement includes covenants related to post-closing adjustments of the purchase price of the Freedom assets, including for tax purposes and leases.
Videotron, which is owned by Quebecor, paid $2.17 billion in cash and assumed debt, primarily lease obligations, on a transaction value of $2.85 billion.
