Quebec-based investment fund La Caisse says it will sell part of its stake in Cogeco Communications as part of periodic portfolio rebalancing.
La Caisse says in a news release that the transaction will generate gross proceeds of around $229 million, with the block of shares being sold representing about 11% of the company’s shares.
The fund says it will continue to be the largest holder of subordinate shares in the company that provides internet, mobile, TV and home phone services.
Kim Thomassin, an executive vice-president and head of Quebec at La Caisse, says the fund continues to believe in Cogeco’s potential after first investing in the company in 2013.
Thomassin says the funds from the transaction will be redeployed into Quebec-based companies to support growth.
The transaction comes after Cogeco Inc. launched a long-awaited wireless service in Canada in July of last year.