Bell Canada Enterprises agree to acquire all of the shares of Manitoba Telecom Services (MTS) for approximately C$3.9 billion (US$3.1 billion).
BCE, which is based in Montreal, said the deal brings a 22% premium for MTS shareholders and long-term benefits to MTS customers and the Province of 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 & CEO, MTS. “We are proud of our history and what we have achieved as an independent company. We believe the proposed transaction we are announcing today with BCE will allow MTS to build on our successful past and achieve even more in the future.”
As part of the deal, BCE promised to invest $1 billion in Manitoba in the five years after the transaction closes to:
- Make Gigabit Fibe Internet, offering average access speeds up to 20 times faster than what MTS customers receive today, available within 12 months after the transaction closes,
- Expand the mobile LTE network and make improvements to mobile data speeds that will double our customer’s average download speeds, and
- Provide access to Fibe TV, North America’s most innovative TV platform.
- Make Winnipeg its headquarters for Western Canada, which with the addition of the MTS team will have a total of approximately 6,900 employees.
In addition, TELUS reached an agreement in principle with BCE that will see approximately one-third of MTS’ postpaid wireless customers become TELUS customers once the purchase of MTS by BCE concludes. As part of the agreement, Bell will also assign one-third of MTS’ dealer locations in Manitoba to TELUS.