Other deals this week include two M&A deals in telecom, tech sectors valued up to $829 million
Bennett Jones is serving as legal counsel to Secure Energy Services Inc. in its $1.075-billion asset sale to Waste Connections. Also in this week’s deals roundup are two M&A deals in the telecom and technology sectors, one valued at $829 million.
Secure Energy to sell facilities in Western Canada to Waste Connections for $1.075 billion
Secure Energy Services Inc., a Calgary-based waste management and energy infrastructure company, has signed an agreement with Waste Connections Inc. to sell a portfolio of 30 energy waste treatment and disposal facilities in Western Canada in a deal valued at approximately $1.075 billion. The facilities were formerly owned by Tervita Corporation.
Bennett Jones LLP is serving as legal counsel and Goldman Sachs & Co. LLC as the exclusive financial advisor to Secure in connection with the transaction.
The assets to be acquired by Waste Connections include 18 treatment, recovery, and disposal facilities; six landfills; four saltwater disposal injection wells; and two disposal caverns.
“Despite the challenging circumstances leading to and associated with completing this sales process, we believe the transaction, including the counterparty, are beginning to highlight the underlying value of SECURE's businesses and represent another meaningful step forward in pursuit of our strategy as one of Canada's sector-leading waste management and energy infrastructure organizations,” said Secure CEO Rene Amirault. “Following closing, the transaction is expected to materially improve our financial position and capital allocation flexibility, marking a pivotal moment for our company to concentrate our resources, accelerate innovation, and redeploy capital in areas of growth for Secure.”
“This acquisition represents a unique opportunity for outsized value creation from the expansion of our presence in Canada through a network of E&P waste treatment and disposal assets located in the most attractive and growing basins,” said Waste Connections President and CEO Ronald J. Mittelstaedt. “The divestitures are a rare combination of high-quality, well-situated disposal and treatment assets with significant internal capacity for growth. With a heavy orientation towards serving customers engaged in energy production activity, these assets will be complementary to our U.S. R360 Environmental Solutions operations.”
The deal is expected to close in the first quarter of 2024, subject to customary closing conditions.
CDPQ to acquire Cogeco shares from Rogers Communications for $829 million
Caisse de dépôt et placement du Québec (CDPQ) has agreed to acquire the shares of Rogers Communications Inc. in Cogeco Inc. and subsidiary Cogeco Communications Inc. in a deal valued at $829 million.
CDPQ's acquisition of Rogers's stake in Cogeco Inc. and Cogeco Communications will be accompanied by a sequence of transactions. These transactions will involve Cogeco Inc. repurchasing all of the shares of Rogers Cogeco Inc. from CDPQ for a total of $280 million.
“This transaction is a unique opportunity for the Corporations to repurchase shares at an attractive price to realize multiple benefits while ensuring we have the ability to deliver our strategic plan,” said Cogeco Inc. and Cogeco Communications Inc. President and CEO Philippe Jetté. “Given the current prices of our stocks, which we believe are undervalued, buying back shares represents an attractive use of our capital to build shareholder value.”
“Already active with Cogeco Communications through past acquisitions, CDPQ is supporting the growth projects of this leading telecommunications company as connectivity needs continue to grow,” said CDPQ Executive Vice-President and Head of Québec Kim Thomassin. “This major share purchase, orchestrated by CDPQ, is key for the company and its plan to develop the North American market.”
Montreal-based fintech firm Nuvei partners with Microsoft
Nuvei Corporation, a Montreal-based fintech company, has partnered with Microsoft to deliver enhanced payment experiences for customers. Financial terms are not disclosed.
As agreed, Microsoft will start using Nuvei’s customizable payments technology in the Middle East and Africa.
Nuvei Chair and CEO Philip Fayer said, “Enabling Microsoft to connect to its customers across a wide range of products is testament to our technology and dedication to world-class customer service. We’re excited to optimize payments for such a universal brand that is trusted and relied upon by so many people.”
“We’re pleased to extend our payment solutions to the Middle East and African region,” said Microsoft Global Payments Vice President Ajith Thekadath. “Whether it is a one-off purchase, software subscription, or in-game purchasing, payments are critical to our overall customer experience. Partnering with Nuvei enables our customers to pay wherever they are and whenever they want to.”
