HALIFAX and AYLMER, Ont. – Bell Aliant said today it is preparing to make a take-over bid for Amtelecom Income Fund, an independent telephone and cable company serving portions of southwestern Ontario.
Bell Aliant Regional Communications Income Fund said this morning it will bid $13 cash per Amtelecom unit, making the total acquisition cost, including assumed debt of Amtelecom, approximately $119 million.
The offer represents a premium of approximately 16.7% over the volume weighted average trading price of Amtelecom Units for the previous 20 trading days and a premium of approximately 15.6% over the closing price of Amtelecom Units on Thursday, February 15, 2007.
“Our bid for Amtelecom is consistent with the strategy communicated to our unitholders at the time of Bell Aliant’s formation last year. We believe Amtelecom provides a natural fit with Bell Aliant due to its focus on regional wireline customers and the proximity of operating footprints. Our scale, focus on customer service and access to leading products and services will benefit Amtelecom customers and other stakeholders,” said Stephen Wetmore, president and CEO of Bell Aliant. “We have made an excellent offer which we believe reflects the full value of Amtelecom.”
Bell Aliant says it will formally commence the offer on or before February 26, 2007 upon receipt from Amtelecom of its list of beneficial unitholders.
The Offer will be fully financed through Bell Aliant’s cash on hand and existing credit facilities.
Amtelecom serves approximately 27,000 telephone customers, 8,800 basic cable customers and over 10,000 high speed Internet customers in towns such as Aylmer, Simcoe, Owen Sound, Tobermory and Manitoulin Island. However, it does not provide all services in all localities.
