Thursday, June 28, 2007

BCE Agrees to Acquisition by Investor Group Led by Teachers Private Capita

BCE, the parent company of Bell Canada, agreed to be acquired by an investor group led by Teachers Private Capital, the private investment arm of the Ontario Teachers Pension Plan, Providence Equity Partners Inc. and Madison Dearborn Partners, LLC. The all-cash transaction is valued at C$51.7 billion (US$48.5 billion), including C$16.9 billion (US$15.9 billion) of debt, preferred equity and minority interests. The BCE Board of Directors unanimously recommended that shareholders vote to accept the offer.

The equity ownership of BCE would be as follows: Teachers Private Capital 52%, Providence 32%, Madison Dearborn 9% and other Canadian investors 7%.

"This proposed transaction concludes a comprehensive and disciplined review of the company's strategic alternatives launched April 17," said Richard J. Currie, Chairman of the Board of BCE. "It will deliver substantial value creation for our shareholders. In addition, a majority of the equity will be owned by Canadians."

"The transaction delivers to our shareholders the economic benefit of the work done to focus on our core business and to strengthen Bell with a new cost structure and new competitive capabilities," said Michael Sabia, President and CEO of BCE. "All members of the investor group have outstanding track records in building strong and resilient enterprises and they share our commitment to customers, our employees and the communities we serve."

  • BCE controls Bell Canada, Telesat Canada and an interest in Bell Globemedia.