Canadian telecoms and media group Bell Canada Enterprises (BCE) has finalised its privatisation of fixed-line operator Bell Aliant following the completion of a compulsory acquisition.
BCE announced the C$3.95bn (US$3.49bn) deal to buy the remaining 56%…
Canadian telecoms and media group Bell Canada Enterprises (BCE) has finalised its privatisation of fixed-line operator Bell Aliant following the completion of a compulsory acquisition.
BCE announced the C$3.95bn (US$3.49bn) deal to buy the remaining 56% shares in Aliant it did not already own last July.
The company offered 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 of a BCE share.
BCE completed the first phase of its offer in September after 81.2% of Aliant’s publicly held common stock and 72.7% of its outstanding preferred shares were validly tendered.
The Montreal, Quebec-based giant then extended the share offer to allow more investors to tender their stock. After more than 90% of Aliant’s publicly-held shares were surrendered, BCE enacted a compulsory acquisition which became effective as of 31 October.
Aliant has now been de-listed from the Toronto Stock Exchange and incorporated into its parent company.
George Cope, BCE’s president and CEO, said in July that the deal improves his company’s “broadband investment strategy and capital markets objectives while delivering great value to the public minority shareholders who have supported Bell Aliant’s success”.
Aliant operates along Canada’s Atlantic coast and BCE has pledged to invest C$2.1bn into networks in the region over the next five years.
BCE has chosen Dan McKeen, previously senior vice president at Aliant, to head up its operations in the Atlantic region. Meanwhile, Robert Dexter, who was a director on Aliant’s board and is CEO of holiday company Maritime Travel, has joined BCE’s board.
To finance the cash portion of the transaction, BCE used available sources of liquidity and C$1bn from a medium-term note sale performed by its subsidiary Bell Canada in September.
Founded in 1999, Aliant operates throughout Eastern Canada offering broadband, fixed-line telephony and IPTV services.
