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News For BCE;RCI;SJR;TU From The Last 14 Days
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November 28, 2014
09:16 EDTBCEBCE to acquire GLENTEL for $670M
BCE announced that they have entered into a definitive agreement whereby BCE will acquire all of the issued and outstanding shares of GLENTEL. Valued at approximately $670M, the transaction hopes to enhance Bell's strategy to accelerate wireless and improve customer service in a competitive wireless marketplace. Bell will acquire all of GLENTEL's approximately 22.4M fully diluted common shares, for a total consideration for GLENTEL's equity of approximately $594M. GLENTEL shareholders may elect to receive either $26.50 in cash, or 0.4974 of a common BCE share, for each GLENTEL common share. Including net debt and minority interest of approximately $78M, the total enterprise value of GLENTEL is approximately $670M. The transaction consideration will consist of a combination of 50% cash and 50% in BCE common shares. Bell will fund the cash component with available liquidity and expects to issue approximately 5.6 million BCE common shares to fund the equity component. GLENTEL shareholders will be able to elect cash or share consideration and will be subject to proration should the total elections for cash or shares exceed the maximum available. The Board of Directors of GLENTEL, acting on the unanimous recommendation of the Special Committee, has approved the transaction and recommends that GLENTEL shareholders vote in favour of it. The Skidmore family, which owns approximately 37% of the common equity of GLENTEL, has entered into agreements with Bell supporting the transaction. Canaccord Genuity Corp., financial advisor to the Special Committee of the Board of Directors of GLENTEL, provided an opinion that as of the date of the opinion and subject to the assumptions and limitations stated therein, the consideration proposed to be received by GLENTEL shareholders is fair from a financial point of view. The agreement between Bell and GLENTEL provides for a non-solicitation covenant on the part of GLENTEL and a right in favour of Bell to match any superior proposal. If Bell does not exercise its right to match, Bell would receive a termination fee of $33.6M in the event GLENTEL supports any superior proposal. Expected to close by the end of the first quarter of 2015, the transaction will be effected through a plan of arrangement and is subject to customary closing conditions, including court, shareholder and competition approvals. A reverse break fee of $33.6M would be payable by Bell to GLENTEL should the transaction not close for competition approval reasons. GLENTEL has agreed not to declare or pay dividends on its shares through to the closing date. GLENTEL shareholders are expected to vote on the transaction in early 2015.
November 20, 2014
06:16 EDTRCIRogers Communications initiated with a Neutral at Citigroup
Price target C$47.
06:16 EDTTUTELUS initiated with a Buy at Citigroup
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06:15 EDTBCEBCE initiated with a Buy at Citigroup
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