(Adds details on deal, background)
TORONTO, March 16 (Reuters) – BCE Inc (BCE.TO), parent
of Bell Canada, has agreed to acquire its smaller rival Astral
Media (ACMa.TO) for C$3 billion, as seeks to expand its presence
in broadcasting and strengthen its position in the mostly
francophone province of Quebec.
BCE said on Thursday it would acquire all Class A non-voting
shares of Astral for $50 per share, a 38 percent premium to
Thursday’s close on the Toronto Stock Exchange.
“Bell’s acquisition of Astral firmly establishes our company
as Qubec’s media leader,” BCE CEO George Cope said in a
statement. “Astral’s strong financial position enables Bell to
further accelerate our significant investment in broadband
innovation across Qubec.”
BCE will also acquire all Class B subordinate voting shares
for C$54.83 per share, for a total consideration of about C$151
million, and all special shares for C$50 million. Including the
assumption of debt, the deal values Astral at about C$3.38
billion.
BCE will fund the deal through a combination of cash and
BCE common equity, with BCE retaining the right to replace
shares with cash, in whole or in part, at closing.
A year ago, Canadian regulators approved BCE’s acquisition
of broadcaster CTV for C$1.3 billion. The BCE-CTV deal was
reached in September 2010.
Astral’s board of directors has unanimously approved the
transaction and advised Astral shareholders to vote in favor of
the deal.
(Reporting By Euan Rocha; Editing by Janet Guttsman)
((euan.rocha@thomsonreuters.com)(+1 416 941 8185)(Reuters
Messaging: euan.rocha.reuters.com@reuters.net))
Keywords: ASTRAL/BCE
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