MONTREAL – Two Canadian telecom income trusts would become one if the offer by Bell Aliant Income Fund to take Bell Nordiq Group is accepted by unit holders.
This morning, Bell Aliant, which currently holds a 63.4% voting interest in Bell Nordiq, offered $4.75 in cash and 0.4113 of a Bell Aliant unit for each Bell Nordiq unit held.
This represents a value of $19 per Bell Nordiq unit based on the closing price of Bell Aliant units on October 10, 2006. It’s an approximate 8% premium over the volume weighted average price for the last five trading days of Bell Nordiq units, says the company’s release.
The offer is conditional upon approval by the Bell Nordiq unitholders, including by a majority of the votes cast by holders other than Bell Aliant and its affiliates and other insiders. The transaction is also subject to applicable securities laws, including the Ontario and Quebec rules regarding business combination transactions of this nature.
Bell Nordiq’s board of directors will appoint an independent committee of the board to consider the proposal and make a recommendation to the board of directors and the unitholders, having regard to all applicable legal and regulatory requirements.
Bell Nordiq Group Inc. holds a 63.4% interest in and is the general partner of both rural Quebec and Ontario telcos Télébec and NorthernTel. Bell Nordiq Group Inc. manages the business and affairs of Télébec and NorthernTel, as well as those of Bell Nordiq Income Fund and Bell Nordiq Trust. Bell Aliant Regional Communications Income Fund indirectly owns 100% of the common shares of Bell Nordiq Group.
