MONTREAL – Regional telco Bell Nordiq Group said Monday that its board of directors will recommend approval of the deal to acquire the company by Bell Aliant, taking Bell Nordiq private.
Currently, Bell Aliant holds a 63.3% voting interest in Bell Nordiq, while minority unitholders hold the remaining 36.7%.
"(T)he board considered the information presented to it, including the favourable report of the special committee of the board, comprised entirely of independent directors, formed to review and consider the proposed transaction. The special committee has obtained a formal valuation and fairness opinion from UBS Securities Canada… (which) concluded that as at December 4, 2006, Bell Aliant’s proposal, which would result in unitholders of Bell Nordiq receiving $4 in cash and 0.4113 of a Bell Aliant unit for each Bell Nordiq unit, is fair from a financial point of view to the minority unitholders of Bell Nordiq," says the press release.
The offer in front of Nordiq is lower than Aliant’s original offer, which it lowered after the federal government altered the taxation rules for income trusts. Both Bell Nordiq and Aliant are income trusts.
"Based on the information and recommendation presented to it, the board intends to recommend that Bell Nordiq unitholders vote in favour of the proposed transaction," adds the release.
The proposed transaction requires the approval of Bell Nordiq unitholders, including by a majority of the votes cast excluding Bell Aliant and its affiliates and other insiders. The board has called a special meeting of unitholders to consider the proposed transaction for January 16, 2007.
