ABB's Growth Strategy for MetroCast
CDPQ'S EQUITY INVESTMENT HIGHLIGHTS VALUE OF
COGECO'S U.S. CABLE ASSETS
U.S. cable sector continues to exhibit strong growth
and as a result, U.S. cable companies continue to
trade at a premium to Canadian peers
CDPQ's investment at 8.8x Calendar 2017E
Adjusted EBITDA, on a tax-adjusted basis,
highlights the value of ABB on a standalone basis
CDPQ's equity valuation implies that Cogeco's pro
forma 79% equity interest in Atlantic Broadband at
closing will be valued at US$1,185 million
CDPQ'S EQUITY VALUATION
(US$ IN MILLIONS)
Ownership for US$315M equity investment 21.0%
U.S. CABLE COMPANY TRADING MULTIPLES (1)
ENTERPRISE VALUE / 2017E ADJUSTED EBITDA(2)
Implied pro forma ABB Equity Value
$1,500
(+) PF net debt
1,736
Implied pro forma ABB Enterprise Value
$3,236
12.2x
10.9x
10.3x
8.7x
8.8x
(-) Value of tax asset(3)
(420)
Charter
COMCAST
CABLEONE™
altice
CDPQ/
ABB
Adjusted pro forma Implied Enterprise
Value
$2,816
Pro forma CY 2017E Adjusted EBITDA
multiple
(4)
8.8x
(1)
(2)
(4)
Represents tax-adjusted multiples with market data as of July 5, 2017. Excludes WOW! an overbuilder.
Company filings and Factset.
See page 23 for more details.
Based on pro forma CY 2017E Adjusted EBITDA of US$320 million, net of 1% management fees that will be payable
to Cogeco Communications.
ATLANTIC (C>>> COGECO
broadband
a Cogeco company
20
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