OTTAWA – MTS has officially asked the CRTC to transfer ownership and effective control of its licensed terrestrial broadcasting distribution undertakings operating in Winnipeg and surrounding areas to Bell Canada.
In application dated June 8, 2016 but made public on Tuesday, MTS said that the steps of the proposed transaction affecting the licensed broadcasting undertakings would be as follows:
– First, the parent corporation of MTS, MTS Communications Holdings Inc. (MCH), would be wound up into Manitoba Telecom;
– Second, Bell would acquire all the issued and outstanding shares in the capital of Manitoba Telecom;
– Third, BCE would incorporate a new wholly owned subsidiary (BCE Subco), which would acquire the shares of Manitoba Telecom from Bell. Manitoba Telecom would then amalgamate with BCE Subco and form MTS Public Amalco;
– Fourth, Bell would acquire the shares of MTS held by MTS Public Amalco. As a result of this acquisition, MTS Public Amalco would no longer form part of the ownership structure of MTS; and
– Finally, Bell would amalgamate with MTS and continue under Bell.
Immediately before the close of the transaction, MTS pledged to surrender its licence for a regional video-on-demand undertaking to the Commission. Following the transaction, the licensed terrestrial BDU of MTS would be wholly owned and effectively controlled by Bell, and Bell would continue to operate the undertaking under the same terms and conditions as those in effect under the current licence.
Comments, interventions and answers must be submitted to the CRTC by October 4, 2106.
The proposed change in ownership and control of this BDU is part of BCE’s proposed $3.9 billion acquisition of MTS. The deal also involves the telecommunications services of MTS and would see Bell acquire MTS's exempt BDUs serving various locations in Manitoba. Prior approval from the Commission is not required for these portions of the transaction.
The Competition Bureau is also reviewing the deal as part of a merger review, and has asked consumers and stakeholders to share their views on the proposed acquisition.
Since the Bureau holds no public hearings, it's not known at this time when it might make a public pronouncement on the proposed transaction, but it's assumed by many observers something will come this fall.
