BCE said Saturday it will be acquired by a group led by the private investment arm of the Ontario Teachers Pension Plan in a deal worth $48.5 billion.
If the deal goes through it will be the biggest takeover in Canadian history, according to financial analysts.
The investor group, which includes Teachers Private Capital, Providence Equity Partners Inc. and Madison Dearborn Partners LLC, will pay $40.51 (U.S. currency) in cash for each share not already owned by Teachers. The deal will make the parent of Bell Canada private.
It would seem to mark the end a bidding process for Canada’s largest telecom that started in April. The investment group has always been in the mix and Canada’s second largest telco, TELUS, pulled out of the running last week. But media reports have stated that a few suitors, including TELUS, are still interested in BCE.
The deal includes absorbing $15.9 billion of debt, preferred equity and minority interests. Teachers will own a 52 percent stake in the company, with Providence owning 32 percent, Madison Dearborn 9 percent and other Canadian investors 7 percent. Teachers already owned a 6 percent stake.
BCE said the sales price is at a 40 percent premium of the average stock price over the first quarter of 2007.
BCE www.bce.ca
