BCE to buy Manitoba Telecom in C$3.1 billion deal

Reuters News
Posted: May 02, 2016 7:55 AM

(Reuters) - Canadian telecom and media company BCE Inc <BCE.TO> said it would buy Manitoba Telecom Services Inc <MBT.TO> for about C$3.1 billion ($2.5 billion) to expand its services in the western Canadian province.

BCE will pay C$40 per share, which represents a premium of 22 percent to Manitoba Telecom's close on Friday.

Montreal-based BCE will also assume the company's outstanding debt of about C$800 million.

BCE said it would divest about one-third of Manitoba Telecom's postpaid wireless subscribers to Telus Corp <T.TO> following the completion of the deal.

(Reporting by Arathy S Nair in Bengaluru; Editing by Maju Samuel)