AYLMER, Ont. – Amtelecom has raised its offer to purchase People’s Communications to $53 per share for the tiny telco.
As reported by www.cartt.ca, last month Amtelecom offered $50 a share for the Forest Ont.-based company. People’s operates People’s Telephone, which serves about 5,200 residential and business access lines as well as Xcelco Internet Services which has approximately 4,650 subscribers.
The new bid raises the total price of the deal from $21.3 million to north of $22.5 million. This new offer is as “a result of an unsolicited third party offer received by People’s to purchase all of the People’s outstanding shares. Under the terms of the arrangement agreement between Amtelecom and People’s, Amtelecom has the right to match any offer that is made to People’s,” says the press release.
As with the prior Amtelecom offer, the board of directors of People’s is supporting this bid, too.
"This improved offer represents attractive value for our shareholders and the transaction with Amtelecom continues to benefit subscribers by creating a stronger, more diversified telecommunications company,” said William Vandenberg, People’s president and CEO. “The People’s board has determined that the Amtelecom transaction is in the best interests of People’s and its shareholders and reaffirms its unanimous recommendation that the People’s shareholders vote in favour of the transaction."
Shareholders will meet January 17th to cast their ballots at North Lambton Secondary School in Forest.
"Our increased offer confirms our continued support of the People’s business and the transaction. The transaction with People’s allows us to achieve our growth strategy and continues to be accretive to cash available for distribution," said Amtelecom Income Fund president and CEO Michael Andrews.
Amtelecom Communications is the local telephone service provider to several communities in southwestern and central Ontario, currently providing services through approximately 21,700 residential and business access lines. Amtelecom Communications also provides cable television service to approximately 9,000 subscribers and Internet services to approximately 7,000 subscribers in certain of its territories.
