Rogers Sells Freedom Mobile To Quebecor For $2.85 Billion

Rogers Communications (RCI) is selling its Freedom Mobile subsidiary to Quebecor (QBR) for
$2.85 billion.

The sale is an effort by Rogers to gain regulatory approval for its proposed $20 billion takeover
of Shaw Communications (SJR).

The Rogers-Shaw transaction has been given the greenlight by shareholders. However, the
federal Competition Bureau has blocked the merger, citing concerns that the deal will lessen
competition in Canada’s wireless sector.

Rogers said in a written statement that the sale of Freedom Mobile to Quebecor addresses the
concerns raised by the Competition Bureau and will ensure the continuation of a fourth wireless
carrier in Canada.

Quebecor is buying all of Freedom Mobile's wireless and internet customers, as well as its
infrastructure, spectrum and retail locations. Once the acquisition closes, Quebecor said it will
expand its wireless operations throughout Canada.

Late last week, the Competition Bureau outlined its opposition to Rogers' takeover of Shaw
Communications in a new submission to the Competition Tribunal ahead of hearings scheduled
to taken place later this year.

The federal agency said Rogers' buying Shaw Communications will harm Canadian consumers
through higher prices, lower quality service, and lost innovation. It also argued that the sale of
Freedom Mobile won't replace competition in western Canada.

Hearings into the Rogers-Shaw merger are scheduled to begin on November 7. The sale of
Freedom Mobile to Quebecor is also subject to regulatory approval.