BC Supreme Court backed him in the family feud that threatened the firm's $16 billion takeover of Shaw Communications
One of the highest profile Canadian family feuds was resolved as last week ended, leaving the path clear for a multi-billion-dollar deal.
The last few weeks has seen a Succession-style drama unfolding at Rogers Communications as Edward Rogers, the head of the family trust that controls 97% of the firm’s voting shares, replaced directors to give him and his allies a majority on the board.
The reasons for the changes Edward Rogers wanted include his dissatisfaction with the company’s performance under CEO Joe Natale.
These board changes were met with opposition, not least from Loretta Rogers who said that her late husband Ted’s written wishes stated that disputes like this should be put to a shareholder vote.
Last Friday, the Supreme Court of British Columbia sided with Edward Rogers. Rogers Communications issued the following statement:
Today the British Columbia Supreme Court ruled that the consent shareholders’ resolution Mr. Edward Rogers, as Chair of the Rogers Control Trust, submitted to Rogers Communications Inc. (“RCI”) on October 22, 2021 (the “Consent Resolution”), was valid, effective, and binding on RCI as of the date it was signed, being October 22, 2021.
No joy in decision
In a separate statement, Edward Rogers said that he takes “no joy in the decision or the events of past weeks.”
He said that the firm needs a strong management that always acts in the best interests of the corporation.
He also addressed the issue of Joe Natale.
“Mr. Natale remains CEO and a director of Rogers Communications and has the Board's support. Our focus must be on the business, a return to stability, and closing our transformational merger with Shaw Communications,” he said.
Edward Rogers expressed regret that his family’s feud has been so public and said he hopes that their disagreements can be resolved privately.
“As we proceed towards closing our merger with Shaw Communications, continue making investments in our future and executing well for our customers, I am certain that for Rogers Communications the best days are still ahead of us,” he concluded.
