Montreal-based telecommunication business BCE Inc. has agreed to buy Manitoba Telecom Services Inc. (MTS) in a deal valued at $3.9 billion. Under this deal, Manitoba’s phone, internet and wireless company will be added to BCE’s telecommunication business. It is already the largest telecom company in Canada.
The deal awaits approval from the Canadian Radio-television and Telecommunications Commission, the Competition Bureau and Industry Canada, but is expected to close late this year or early 2017.
The purchase price includes $3.1 billion for the company, plus BCE will assume $800 million worth of MTS debt. BCE is offering $40 per share in cash or equity for the Winnipeg-based company’s stock. MTS shareholders can choose to receive either cash or shares in BCE in exchange for handing over their shares in the company.
To finance the deal, BCE will sell about a third of MTS’s postpaid subscriber base and retail locations to Telus, in a separate transaction.