Telecoms and DTH giant Bell Canada Enterprises (BCE) has successfully completed the first phase of its offer to purchase all the issued and outstanding common shares of fiber operator Bell Aliant.
According to the depository agent for the offer, CST…
Telecoms and DTH giant Bell Canada Enterprises (BCE) has successfully completed the first phase of its offer to purchase all the issued and outstanding common shares of fiber operator Bell Aliant.
According to the depository agent for the offer, CST Trust Company, a total of 103.49 million Bell Aliant common shares, representing 81.2% of the company’s publicly held stock, were validly tendered on 19 September.
In addition, 18.39 million of Bell Aliant preferred equity, representing 72.7% of the company’s outstanding preferred shares, were also tendered.
BCE will pay for these shares on 24 September and has extended the common share offer until 2 October to enable any shareholders who have not tendered their shares to do so.
The telco expects the privatization to be completed on or about 31 October and has stated that if at least 90% of the publicly-held common shares of Bell Aliant are tendered by this point it will acquire the balance through compulsory acquisition.
BCE is offering Bell Aliant shareholders the choice of C$31 in cash for each of their shares, 0.6371 of a BCE share, or C$7.75 in cash and 0.4778 for a BCE share. The offer represents an 11.6% premium on Aliant’s 20-day volume weighted average price of C$27.78.
BCE initially announced that it had agreed to a deal to buy out the public shareholders in Bell Aliant for around C$3.95bn (US$3.68bn) in late July. BCE already owned 44% of the fiber operator and has exercised managing control of the business.
To finance the privatization, BCE will use available sources of liquidity to fund the cash portion of the consideration and will issue up to 61 million new common shares for the equity component.
Founded in 1999, Aliant operates throughout Eastern Canada offering broadband, fixed-line telephony and IPTV services.
