MONTREAL-Bell Canada announced plans to purchase for $1.06 billion the minority interests in BCE Mobile Communications Inc. Bell Canada currently owns 65 percent of the outstanding common shares of BCE Mobile.
As a result of the acquisition, the minority shareholders in BCE Mobile would receive $39.09 for each of their common shares. Already approved by the boards of Bell Canada and BCE Mobile, the deal still must be approved by the minority shareholders.
Bell Canada said it will finance the offer through the issue of new equity to its two shareholders-BCE Inc., which owns 80 percent, and Ameritech Corp., which owns 20 percent of the company.
George Stenitzer, spokesman for Chicago-based Ameritech, said the company’s 20-percent stake in Bell Canada will not be affected.
“We’re supportive of what Bell Canada’s management is doing. That 20 percent of Bell Canada now will include even more cellular subscribers, sites and investment opportunities,” said Stenitzer.
If approved, the acquisition is expected to close early in the fourth quarter, according to Bell Canada.