Manitoba Telecom Services (MTS) agreed to sell its Allstream division to Accelero Capital Holdings , an investment and management group, for $520 million, subject to certain customary adjustments. The deal is expected to close in the second half of 2013, subject to receipt of Investment Canada approval and customary closing conditions.
Allstream provides enterprise communications services acress Canada and counts more than 65,000 businesses – large, mid-sized, and small – among its national customer base. Allstream operates an IP network spanning 30,000 route kms across Canada, including 18,000 route kms of inter-city fiber and 8 cross border connections to the U.S.
Accelero is an investment and management group focused on telecommunication, digital media and technology. Accelero is controlled by Egyptian billionaire Naguib Sawiris, Non-Executive Chairman and Co-Founder, is a renowned telecom entrepreneur.
“This transaction is the successful culmination of a diligent process to determine the best way to create shareholder value and drive strong, competitive and sustainable futures for both MTS and Allstream,” said David Leith, Chair of the Board of Directors. “We believe this transaction represents attractive value for Allstream, is in the best interests of the Company, its customers, employees and business partners, and that it will increase the level of investment and competition in Manitoba and across the Canadian business market.”
Pierre Blouin, Chief Executive Officer, said, “This transaction makes MTS a stronger, more focused and more valuable company. MTS goes forward as a pure-play telecom with a strong consumer franchise and significant free cash flow to support our dividend. We will also have sufficient capital to invest in wireless spectrum and to continue bringing fibre-to-the-home, 4G LTE wireless technology and other products and services to more communities across Manitoba, further solidifying our position as the undisputed market leader in the province.”
- Naguib Onsi Sawiris is also known for being chairman of the telecommunications companies Wind Telecom and Orascom Telecom Holding (OTH)
