12:54 PM EDT, 03/20/2024 (MT Newswires) -- The Logic business newsletter reported Tuesday that Rogers is looking to divest of nine of its 13 data centres, notes National Bank.

Analyst Adam Shine writes that he is yet to get any details from the company, but he thinks this effort likely forms part of Rogers' goal of raising $1 billion in 2024 from the sale of non-core assets, mostly redundant real estate.

Quebecor sold its 4Degrees Colocation business in late 2018 for $259 million (13x revenues, 23.5x EBITDA), Cogeco divested of its Peer 1 unit in early 2019 for $720 million (8.9x EBITDA), and Bell sold 25 of 30 data centres in June 2020 for $1.04 billion (11.4x LTM EBITDA or 12.4x LQA while buyer reported 15x).

Data centre companies trade at an average EV/EBITDA of more than 22x on 2024 consensus estimates, Shine adds.

Rogers will be reporting its Q1 results on April 24.

Rogers is rated Outperform, with a $78 target.

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