Bell Canada has announced that it is paying C$3.9 billion (USD2.5 billion) to buy local rival, Manitoba Telecom Services.
Bell said that is also plans to invest $1 billion in capital over 5 years after the transaction closes to expand its broadband networks and services throughout Manitoba.
“This transaction recognizes the intrinsic value of MTS and will deliver immediate and meaningful value to MTS shareholders, while offering strong benefits to MTS customers and employees, and to the province of Manitoba,” said Jay Forbes, President and CEO of MTS.
The combined company’s Manitoba operations will be known as Bell MTS. Winnipeg becomes Western Canada headquarters for Bell and, with the addition of MTS’s 2,700 employees, Bell’s Western team grows to 6,900 people.
The transaction will be completed through a plan of arrangement under which BCE will acquire all of the issued and outstanding common shares of MTS for $40 per share, which will be paid with a combination of BCE.