Bell Canada (BCE) and rival Rogers have completed their joint acquisition of handset retailer Glentel.
As per the agreement, BCE acquired all of Glentel’s 22.31 million common shares for about C$594m. It then divested 50% of Glentel shares to…
Bell Canada (BCE) and rival Rogers have completed their joint acquisition of handset retailer Glentel.
As per the agreement, BCE acquired all of Glentel’s 22.31 million common shares for about C$594m. It then divested 50% of Glentel shares to Rogers later in the day.
Under BCE’s offer, Glentel shareholders could choose to receive either C$26.50 in cash or 0.4974 of a common BCE share for each Glentel share, subject to proration. As a result of the proration, those who opted for cash will receive the above amount, while the others will get 0.3127 BCE common shares and C$9.84 in cash per Glentel share.
BCE funded the C$295.6m cash component with available liquidity and issued about 5.55 million shares for the equity component.
Rogers subsequently agreed to pay circa C$392m in cash for its stake in Glentel.
Burnaby-based Glentel is expected to be delisted from the Toronto Stock Exchange tomorrow (22 May). The company has about 370 retail and business sites in Canada, 734 in the US and 141 in Australia and the Philippines.
Canada’s Competition Bureau gave the green light to the joint acquisition earlier this month after the parties agreed firewalls to ensure ongoing competition.
Glentel was advised by Cannacord Genuity, while BCE and Rogers managed the deal internally.
