WINNIPEG – An independent proxy advisory research firm is recommending that MTS shareholders vote in favour of BCE’s proposed $3.9 billion acquisition of the regional player.
Institutional Shareholder Services (ISS) offered the recommendation in a report released Tuesday. The special meeting of MTS shareholders will take place June 23 at the Fort Garry Hotel in Winnipeg, and the MTS Board of Directors has unanimously recommended that shareholders vote to approve the deal.
“A vote FOR is warranted based on a review of the terms of the transaction, in particular, the implied premium and the reasonable strategic rationale”, ISS said in the report. “Shareholders have the flexibility to choose between cash and stock consideration. The cash consideration will provide certainty of value, and the share consideration will allow shareholders to continue to participate in the future potential growth of BCE, Canada's largest communications company, which has a strong history of increasing its dividend and currently delivers an attractive yield."
BCE announced plans to acquire MTS on May 2, 2016 in a transaction that would include divesting approximately one third of postpaid MTS wireless customers and retail locations to Telus.
"We are pleased that ISS supports the unanimous recommendation of the MTS Board of Directors that our shareholders vote in favour of the BCE transaction," said MTS president and CEO Jay Forbes , in a statement. "This transaction will deliver immediate and meaningful value to MTS shareholders while offering significant investment and innovation benefits for our customers, our employees, and the Province of Manitoba."
