Ottawa Citizen

Cogeco to pay $200M for Toronto Hydro Telecom

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TORONTO •

Cogeco Cable Inc plans to acquire all the shares of cityowned Toronto Hydro Telecom Inc for $200 million, the cable company said yesterday. The sale is expected to close on July 31.

Toronto Hydro Telecom leases fibre-optic cable capacity and offers a variety of services to business customers and organizati­ons including data, ethernet, voice over Internet protocol, high-speed Internet access, dark fibre, data storage and data security.

Cogeco, which operates in Ontario, Quebec and Portugal, said the acquisitio­n in the populous greater Toronto area ”brings interestin­g growth opportunit­ies.”

Toronto Hydro Telecom’s network, workforce and business market potential “should complement our existing business telecommun­ications activities in Ontario and allow future growth for Cogeco Cable in this line of business,” Louis Au- det, the company’s president and chief executive, said in a statement.

The telecom unit is part of Toronto Hydro, which runs the municipall­y owned power distributi­on utility.

“This sale enhances our ability to invest in the renewal of our distributi­on system,” said David O’Brien, president and chief executive of Toronto Hydro.

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