A low-growth environment may drive Rogers, BCE, Telus and others to divest non-core assets to pay down debt, it says.
CIBC says Rogers is unlikely to drop its half of the 75 per cent stake in Maple Leafs Sports and Entertainment, but BCE is “potentially a more motivated seller .” Canada’s telecommunications giants may be looking to sell non-core assets as price wars shrink their earnings growth, with everything from cell phone towers to ownership stakes in the Toronto Maple Leafs and Raptors possibly on the block, analysts at CIBC say.
The Canadian policy landscape around media makes selling those assets, by any telecom, even more unlikely, CIBC says. “With the dominant media players in Canada being the telecoms themselves and given the industry is regulated, we do not view media assets as a likely choice for divestiture.”Similarly, CIBC doesn’t see BCE and Telus selling off their fibre infrastructure “given perceived competitive advantages in the Canadian wireline market,” despite widespread global activity of this nature.
Telecom companies around the world have also been unloading data centres, CIBC says, with current timing favourable given growing demand driven by processing needs for artificial intelligence. BCE, Quebecor and Cogeco have previously sold data centre assets for $780 million, $200 million and $527 million, respectively . Today, CIBC says, Rogers’ 20 data centres could be worth between $0.6 billion and $1.7 billion, and Telus’ seven data centres between $200 million and $600 million.
Maple Leafs Sports And Entertainment Toronto Maple Leafs Media Assets Rogers Telus Roberto Machado Cell Phone Towers Roberto Machado Noa Motivated Seller Raptors
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