RTTNews | Mar 15, 2021 10:10AM EDT

10:10 Monday, March 15, 2021 (RTTNews.com) - Shares of Shaw Communications Inc. (SJR) are rising more than 35% Monday morning on the news of it getting acquired by Rogers Communications Inc. for about $26 billion, including debt.

As per the deal signed between Shaw and Rogers, Rogers will pay $40.50 per share to all holders of Class A and B Shares of Shaw, a premium of about 70% to Shaw's class B shares closed at $23.90 on Friday, on the Toronto Stock Exchange.

About 60% of the Shaw family shares will be exchanged for 23.6 million Class B Shares of Rogers at an exchange ratio of 0.70 reflecting the volume weighted average trading price of Rogers shares over the last 10 days.

On closing, Shaw family will become one of the largest shareholders in Rogers.

Rogers plans to invest $2.5 billion to build 5G network in Western Canada. The company also said it will create a $1 billion fund dedicated to connecting rural, remote and Indigenous communities to high-speed Internet across the four Western provinces and additional $3 billion to support additional network, services, and technology investments.

SJR is currently trading on the NYSE at $26.22.

Read the original article on RTTNews ( https://www.rttnews.com/3177496/stock-alert-shaw-communications-zooms-35-on-acquisition-by-rogers-communications.aspx)

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