MONTREAL – Units of the new Bell Aliant Regional Communications Income Fund began trading today under the symbol BA.UN.
As has been reported a number of times by Cartt.ca, the wireline operations of Aliant were combined with certain of Bell Canada’s wireline operations in its regional territories in Ontario and Quebec to form the new Fund.
Bell Aliant is the largest business trust in Canada, with an enterprise value of approximately $10 billion. The organization’s telecommunications operations extend through six Canadian provinces, serving a population of more than 5.3 million from the Ontario/Manitoba border to the eastern tip of Newfoundland and Labrador.
"We now have a dedicated, experienced and diverse team of more than 10,500 employees who will work hard to ensure that our 3.4 million customers continue to have access to the highest quality networks and the latest products and services. This transaction will be seamless to our customers and they will continue to be served by the brands they know and trust," said Stephen Wetmore, president and CEO of Bell Aliant, in the press release.
In order to effect the Aliant Plan, the Fund directly and indirectly acquired all of the outstanding common shares of Aliant, as well as BCE’s 63.4% indirect interest in Telebec, Limited Partnership and NorthernTel, Limited Partnership, which is exchangeable for a 63.4% interest in the Bell Nordiq Income Fund.
As part of this transaction, Bell Canada acquired Aliant Mobility’s wireless operations and Aliant’s DownEast Communications ("DownEast") retail outlets. In addition, approximately $1.25 billion of Bell Canada debt was effectively transferred to the Fund. In connection with the completion of the Aliant Plan, Bell Canada and the Fund also entered into a number of outsourcing and commercial agreements.
As a result of the Aliant Plan, BCE now owns, directly and indirectly, a 73.5% voting and equity interest in the Fund (on a fully-diluted basis). Approximately 28.8% of this interest is held directly in the form of units of the Fund, and the balance is held directly and indirectly in the form of exchangeable limited partnership interests in underlying entities of the Fund.
BCE will distribute to its common shareholders, by way of a separate plan of arrangement, approximately 64,628,000 units of the Fund (representing an approximate 28.8% interest in the Fund, on a fully-diluted basis). BCE will directly and indirectly hold an approximate 44.7% interest in the Fund (on a fully-diluted basis) immediately following this distribution to its common shareholders of record at the close of business on July 10, 2006, concurrent with the consolidation of BCE’s common shares on a 0.915 for 1 basis.
As required by applicable securities laws, BCE hereby discloses that it holds its interest in the Fund for strategic purposes and that although it has no current intention to acquire additional securities of the Fund, it reserves the right to increase or decrease, from time to time, its ownership over securities of the Fund.
www.Bell.Aliant.ca
www.bce.ca
