Shaw scoops fibre-optic network in all cash deal

Shaw adds to its stable of unique assets with its latest purchase.

| More on:
The Motley Fool

Shaw Communications (TSX:SJR.B,NYSE:SJR) announced yesterday that it is acquiring ENMAX Envision Inc., a subsidiary of Alberta based utility ENMAX, for $225 million.  Envision is the owner of one of Calgary’s largest fibre-optic networks for business.  Shaw will package this network capability into its Shaw Business division to bolster its existing services package.  More details on the acquisition are expected when Shaw reports earnings this coming Friday.

Shaw tends to get shoved to the back burner when this country’s telecom names are discussed.  The likes of Telus (TSX:T), Rogers (TSX:RCI.B), and BCE Inc. (TSX:BCE) receive most of the attention due to their national presence.  However, Shaw is a tough regional competitor in Canada’s West for all 3 of the national players given the competitive advantage that its cable network/broadband assets provide.

Shaw’s shares have appreciated by approximately 21% over the past 6 months as the bitter price war caused by Telus’ entry onto Shaw’s TV/internet turf appears to have subsided allowing margins to return to more rational levels.

In addition, Shaw’s recent asset swap with Rogers demonstrated a congenial link between the two family-controlled businesses that hasn’t been evident in the past.  The widely held “someday it’s going to happen” thesis on Shaw is that Rogers will acquire it.  The asset swap was interpreted as a possible prelude to something much bigger.  It was at least a sign that the two companies can sit in the same room with each other to work out a deal.

Shaw is a solid dividend payer, the kind of stock that has proven itself to be a winner time and again in low-interest rate environments like we’re in.  We have created a special FREE report that identifies 13 U.S. companies that fit the same mold as Shaw and will have you rolling in dividend cheques before you know it.  Simply click here and we’ll send you “13 High Yielding Stocks to Buy Today” – absolutely FREE!  You’re just one click away from dividend nirvana!

Follow us on Twitter and Facebook for the latest in Foolish investing.

Fool contributor Iain Butler does not own shares of the companies mentioned in this report at this time.  The Motley Fool has no positions in the stocks mentioned above.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

More on Investing

a sign flashes global stock data
Dividend Stocks

Where I’d Invest $4,700 in the TSX Today

An outperforming hidden gem is a safe and financially rewarding investment option in the TSX today.

Read more »

investor looks at volatility chart
Stocks for Beginners

Market Dip: Opportunity or Risk This May?

If you're worried about the markets this May, then let's look at what Canadian stocks to consider.

Read more »

Canadian Red maple leaves seamless wallpaper pattern
Dividend Stocks

Tariff Turmoil: This Canadian Stock Is a Buying Opportunity

This Canadian stock is a buying opportunity because of the long-term viability of the business, notwithstanding the tariff turmoil.

Read more »

hand stacks coins
Dividend Stocks

TFSA Investors: 2 Blue-Chip Stocks to Buy and Hold Forever for Tax-Free Wealth Growth

Consider adding these two giants from their respective industries if you’re on the hunt for long-term investments in a self-directed…

Read more »

calculate and analyze stock
Dividend Stocks

Top Canadian Stocks to Buy Now With $5,000

Investing in blue-chip Canadian stocks such as Dollarama should help you deliver outsized gains in 2025 and beyond.

Read more »

clock time
Investing

Canadian Tire to Buy Assets From This Legendary Canadian Company: Time to Buy the Stock?

Canadian Tire (TSX:CTC.A) just inked a $30 million deal to acquire some very prestigous brands from Hudson's Bay Company.

Read more »

Canada national flag waving in wind on clear day
Investing

2 Canadian Stocks With Good Insulation From Trade Tensions

Here's why I think Shopify (TSX:SHOP) and Brookfield Asset Management (TSX:BAM) are two top stocks to buy for those concerned…

Read more »

stock research, analyze data
Dividend Stocks

Where to Invest $8,700 in the TSX Today

These stocks still trade at discounted prices.

Read more »