AYLMER and FOREST, Ont. – During a special meeting yesterday evening that stretched past midnight, the shareholders of People’s Communications approved the proposed acquisition of the independent telco by Amtelecom Income Fund.
A total of 287,518 votes were cast in favour of the arrangement, representing 80.9% of the votes cast in person or by proxy at the meeting. Amtelecom is acquiring People’s for an aggregate purchase price of approximately $25.6 million. The acquisition is being financed with Amtelecom’s existing credit facilities.
The transaction, which was a battle, thanks to competing bids by another independent cable company and telco, Execulink Cablecom, is subject to court approval, a hearing for which is scheduled today.
The acquisition of People’s is expected to close Tuesday, January 24, 2006.
Amtelecom Income Fund owns Amtelecom Communications, 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.
People’s Communications provides local and long distance telephone service in Forest, Ontario through approximately 5,200 residential and business access lines. The company also provides Internet and data services through its wholly-owned subsidiary, Xcelco Internet Services, to approximately 4,650 subscribers, among other lines of business.
