MONTREAL – The proposed acquisition of BCE by an investor group led by Teachers’ Private Capital has been approved, subject to a few conditions, by Industry Minister Jim Prentice, the telco announced Wednesday.
“Based on the information provided thus far and subject to the paragraphs below, Industry Canada finds that BCE Inc. would be, under the proposed structure, ‘Canadian’ within the meaning of the Radiocommunication Regulations of the Radiocommunication Act and in relation to the radiocommunication authorizations held by subsidiaries and affiliates of BCE Inc.,” states Prentice in a letter dated April 8 to Bell.
The minister writes that the ownership change is approved subject to Industry Canada receiving documentation confirming the identity and other information in relation to board members and officials. BCE must also show that the draft agreements, including the proposed amendments, were executed in the form submitted for review by Industry Canada.
The letter also thanked Teachers’ and the other shareholders for their willingness to make changes to ensure BCE remained in Canadian hands. These changes included ensuring the quorum of board directors, the executive committee and compensation committee will be independent from the non-Canadian shareholders and the quorum at the shareholders’ meetings will require that a majority of the voting shares be held by Canadian shareholders, along with raising the threshold for veto over decisions to $150 million.
Industry Canada also notes in the letter that the conditions of licence currently applicable to all radio and spectrum authorizations issued by Industry Canada to BCE’s subsidiaries and affiliates will continue to apply.
Teachers’ Private Capital, the private investment arm of the Ontario Teachers’ Pension Plan, along with Providence Equity Partners Inc., Madison Dearborn Partners, LLC, and Merrill Lynch Global Private Equity joined together to buy into BCE.
BCE now expects the transaction to close before the end of the second quarter of 2008.
