TORONTO and MONTREAL – Bell and Rogers have reached an agreement that will see the two rivals jointly own independent mobile retailer Glentel's Canadian retail distribution outlets.
Bell and Rogers will each own 50% of Glentel shares representing 50% of Glentel's retail operations, reads a statement issued by Bell. In exchange, Rogers has agreed to pay in cash to Bell 50% of the Glentel transaction value following the successful closing of Bell's Glentel acquisition, and will withdraw its recently filed court application for an injunction. Bell said on November 28 that it planned to buy the independent mobile retailer for $670 million.
Headquartered in Burnaby, BC, Glentel sells wireless products and services from Bell Mobility, Chatr, Fido, Rogers Wireless, SaskTel and Virgin Mobile at 494 retail locations across Canada.
Once the dust has settled between Bell and Rogers, Glentel will operate as a standalone entity with independent management, and continue with its strategy of offering competing dual-carrier wireless brands to Canadian consumers and business customers, continues Bell’s statement. Bell's agreement with Rogers does not impact the Glentel acquisition timeline or plan of arrangement, and closing of Bell's Glentel acquisition is not dependent on the closing of Bell's transaction with Rogers. Bell’s acquisition of Glentel is expected to be completed by the end of the first quarter of 2015.
"Providing continued access to Glentel's first-class wireless retail operations for both competitors, this agreement greatly reduces Bell's cost to acquire Glentel and helps ensure the transaction closes as scheduled to the benefit of Glentel shareholders," said George Cope, president and CEO of BCE Inc. and Bell Canada, in the statement. "Glentel's distribution scope and renowned service and sales capabilities remain key to Bell's strategy to accelerate wireless in Canada while delivering an improved customer experience."
The board of directors of Glentel unanimously approved the Bell transaction and recommended that shareholders vote in favour of it. A special meeting of Glentel shareholders to obtain approval of the deal is scheduled for January 12, 2015.
