This represents a 23.2% premium to the weighted-average closing share price on the TSX for the 20-day period ending , the business day prior to the announcement of the sale of its Allstream business communications division.As part of the agreement, MTS will not declare any further dividends on its common shares after its upcoming second-quarter 2016 dividend, expected to be declared in May and paid in July."Bell and MTS have a shared legacy of service and innovation that spans more than a century.We are honoured to join with the MTS team in this all-Canadian transaction to deliver the benefits of new infrastructure investment, technology development and the best of broadband communications to Manitobans." Bell plans to invest "This transaction recognizes the intrinsic value of MTS and will deliver immediate and meaningful value to MTS shareholders, while offering strong benefits to MTS customers and employees, and to the province of , President and CEO of MTS.This news release contains forward-looking statements. For a description of the related risk factors and assumptions, please see the section entitled "Caution Concerning Forward-Looking Statements" later in this release. (Bell) (TSX: BCE) (NYSE: BCE) today announced that it will acquire all of the issued and outstanding common shares of Manitoba Telecom Services Inc.(MTS) (TSX: MBT) in a transaction valued at approximately , and we plan to contribute new communications infrastructure and technologies that deliver the latest wireless, Internet, TV and media services to residents and businesses throughout the province," said .Bell Media's TV, radio and digital platforms will continue to offer opportunities for local artists and entertainers along with ongoing support for the Winnipeg Jets and Winnipeg Blue Bombers on the national TSN sports network and TSN Radio 1290 Winnipeg. Details of the transaction"With its immediate free cash flow accretion and significant operational synergies and tax savings, the transaction fully supports Bell's broadband leadership strategy and our dividend growth objective.The balanced transaction financing structure maintains our strong investment-grade balance sheet with substantial financial flexibility," said in cash or 0.6756 of a BCE common share for each MTS common share, subject to pro-ration such that the aggregate consideration will be paid 45% in cash and 55% in BCE common shares.
BCE will fund the cash component of the transaction from available sources of liquidity and will issue approximately 28 million common shares for the equity portion of the transaction, which offers MTS shareholders access to BCE's dividend growth potential.The share consideration is based on BCE's 20-day volume weighted average price of .Creating significant immediate and long-term value for MTS shareholders, the transaction values MTS at approximately 10.1 x 2016E EBITDA, based on the latest analyst consensus estimates, and 8.2x including tax savings and operational synergies.The BCE dividend has been increased 12 times, representing an aggregate increase of 87%, since Q4 2008 and currently delivers an attractive 4.6% yield.
"We are very proud of what the MTS team has accomplished.
Now, enabled by Bell's national scale and commitment to broadband investment, Bell MTS will be very well-positioned to accelerate service innovation, customer support and community investment to the benefit of Manitobans like never before." The combined company's headquarters for Bell and, with the addition of MTS's 2,700 employees, Bell's Western team grows to 6,900 people.