MONTREAL – Unitholders of Bell Nordiq Income Fund have voted overwhelmingly in favour of the offer by Bell Aliant Regional Communications Income Fund to take Bell Nordiq Group private.
At a special meeting Tuesday, 99.8% of all votes cast and 99.3% of the votes cast by minority unitholders were in favour of the privatization, says the press release.
Subject to all other conditions precedent to the transaction being satisfied or waived by January 22nd, Bell Nordiq unitholders will be paid a special distribution of $4 in cash on January 29, 2007 and receive 0.4113 of a Bell Aliant unit in exchange for each Bell Nordiq unit on January 30, 2007.
Unitholders of record at the close of business on January 26th will be entitled to the Special Distribution. Bell Nordiq units will cease to trade on the TSX as of the close of business on January 29th and will be delisted at the close of business the next day.
Bell Nordiq Group Inc. holds a 63.3% interest in and is the general partner of both Télébec and NorthernTel. Bell Nordiq Group Inc. manages the business and affairs of Télébec and NorthernTel, as well as those of Bell Nordiq Income Fund and Bell Nordiq Trust. Bell Aliant Regional Communications Income Fund indirectly owns 100% of the common shares of Bell Nordiq Group Inc.
Bell Nordiq Income Fund is an unincorporated limited purpose trust created to indirectly acquire and hold the outstanding partnership units of Télébec and NorthernTel. Currently, the Fund indirectly holds a 36.7% interest in both Télébec and NorthernTel, while Bell Aliant Regional Communications Income Fund, indirectly through Bell Nordiq Group Inc., holds the remaining 63.3%.
The new structure will create a combined telephone operation covering all of Eastern Canada as well as Northern Quebec (operating as Télébec) and Northern Ontario (operating as NorthernTel).
"We are very pleased that Bell Nordiq unitholders have voted in favour of privatization,” said Stephen Wetmore, president and CEO of Bell Aliant, in a press release. “Bell Nordiq has successfully demonstrated that they have a rich understanding of the customers and employees in their region and we look forward to building on that experience as we grow our business together.”
