AYLMER and FOREST, Ont. – Thanks to a persistent and still unnamed third party Amtelecom has increased its offer yet again to buy People’s Communications of Forest, Ont.
Amtelecom has increased its offer to $55 in cash for each share (from $54, and the initial offer of $50) of People’s and will permit People’s to pay a cash dividend of up to $0.60 per share to People’s shareholders. The board of People’s has again re-affirms its unanimous approval of the transaction.
The acquisition continues to be accretive to Amtelecom’s cash available for distribution, said Amtelecom, which is an income trust.
The increased offer, just like the last increased offer, is as a result of an unsolicited third party offer received by People’s to purchase all of the People’s outstanding shares. The third party has not yet been identified by People’s, whose deal with Amtelecom permits the buyer to match any additional offer made.
"This improved offer continues to represent attractive value for our shareholders and the transaction with Amtelecom benefits subscribers by creating a stronger, more diversified telecommunications company,” said William Vandenberg, president and CEO of People’s.
"Our increased offer again confirms our continued support of the People’s business and the transaction. The transaction with People’s allows us to achieve our growth strategy and continues to be accretive to cash available for distribution,” said Amtelecom CEO Michael Andrews.
A meeting of the People’s shareholders will be held on January 17, 2006 at the North Lambton Secondary School, 15 George Street in Forest, Ont. The resolution to be put to the People’s shareholders requires the approval of two-thirds of the shareholders present at the meeting, in person or by proxy. The transaction is expected to close on or about January 24, 2006.
Amtelecom is the local telephone service provider to several communities in southwestern and central Ontario, currently providing services through approximately 21,700 residential and business access lines. The company also provides cable television service to approximately 9,000 subscribers and Internet services to approximately 7,000 subscribers in certain of its territories.
People’s is an independent, local telco serving 5,200 residential and business access lines in Forest, Ont. People’s also provides Internet and data services through its wholly-owned subsidiary, Xcelco Internet Services, to approximately 4,650 subscribers. People’s also provides integrator services including business phone system sales and installation, data wiring and fibre optic cabling through its wholly-owned subsidiary, Interlink Telecommunications, to a diverse group of customers that includes key customers in the petro-chemical industry.
