BCE will buy Manitoba Telecom Services (MTS) in a transaction valued at CAD 3.9 billion. MTS shareholders will receive CAD 40.00 per share, in a combination of cash and BCE shares. The deal has been approved by the boards of both MTS and BCE and is supported by the management teams of both companies. Winnipeg will become the headquarters for Western Canada, set to host 6,900 employees with the addition of the MTS team.
After closing, BCE will invest USD 1 billion in the following five years. The company wants average access speeds for its Make Gigabit Fibe Internet to go 20 times faster than what MTS customers receive today, available within 12 months. The company will also expand the mobile LTE network and make improvements to mobile data speeds that will double customer average download speeds. Finally, BCE will use the money to provide access to the Fibe TV platform.
The MTS data centre is expected to join BCE’s network of 27 large data centres. BCE will maintain a strong and important position within the local community, ensuring that naming rights for the home of the Winnipeg Jets and other community sponsorships are maintained or extended. Additionally, BCE will introduce a new Bell Let’s Talk Manitoba fund focused on mental health support for aboriginal communities chaired by Manitoban Clara Hughes, the national spokesperson for Bell Let’s Talk.
MTS shareholders will vote on the deal at an EGM to be held in late June, which is currently expected to close in late 2016 or early 2017.
Also after closing, Telus will take about one-third of the postpaid wireless customer base of MTS. As part of the deal inked between Telus and BCE, Bell will also assign one-third of MTS dealer locations in Manitoba to Telus. The agreement is subject to approval from the Competition Bureau and other conditions.
