SAINT JOHN, NB – Court approval has been granted to a new partnership that will combine the wireline operations of Bell Canada and Aliant in eastern Canada.
The Nova Scotia Supreme Court has given final approval to create the Bell Alliant Regional Communications Income Fund, which was announced in March. The fund will combine Bell Canada’s wireline telecom operations in Ontario and Quebec (and its indirect 63.4% interest in NorthernTel and Telebec) with Aliant’s wireline, IT, and other operations in Atlantic Canada.
Aliant will also transfer its wireless operations and its ownership in DownEast Ltd. to Bell Canada.
The trust has shareholder approval but still needs regulatory approvals and other closing conditions. The deal is expected to close early in the third quarter of 2006.
The new trust, which will have 3.4 million local access lines and more than 400,000 high-speed Internet subscribers in eastern Canada, will be headquartered in Atlantic Canada.
Bell says the trust will create the largest North American regional telecommunications service providers while being one of the largest wireline operations in North America. It estimates that the fund transaction will increase Bell Canada’s net asset value by approximately $3.5 billion. Aliant has a market capitalization of approximately $4.5 billion.
