BCE's Bell Canada To Buy Ziply Fiber In Around C$7 Bln Cash, Debt Deal

BCE

26.63 USD -1.44%

• Charts
• News
• Analysen

Kaufen / Verkaufen

(RTTNews) - Canadian communications company BCE, Inc. (BCE, BCE.TO) announced Monday that its unit Bell Canada has entered into a definitive agreement to acquire Ziply Fiber in a deal with a transaction value of around C$7.0 billion.

The consideration comprises around C$5.0 billion in cash and the assumption of outstanding net debt of around C$2.0 billion to be rolled over at transaction close.

The acquisition is expected to close in the second half of 2025, subject to certain customary closing conditions and the receipt of certain regulatory approvals.

Following the deal closure, Ziply Fiber, a fibre Internet provider in the Pacific Northwest of the U.S, will operate as a separate business unit and will continue to be headquartered in Kirkland, Washington.

In the cash price, C$4.2 billion is expected to be funded from the net proceeds of the divestiture of MLSE. The balance of the purchase price will be funded from a discounted treasury DRP program.

If the close of the sale of BCE's ownership stake in MLSE occurs after the close of the acquisition, Bell has entered into a $3.7 billion fully committed delayed-draw term loan facility to finance the acquisition.

BCE said the acquisition enhances Bell's growth profile and strategic position by giving it a foothold in the large, underpenetrated U.S. fibre market. The deal will increase its scale, diversify its operating footprint and unlock significant growth opportunities.

The combination of Bell and Ziply Fiber is expected to provide enhanced value for existing and new customers in both Canada and the United States as demand for faster, more reliable Internet and data services increases.

BCE further said it intends to maintain its annual common share dividend at the current level of $3.99 per share during the financial year 2025.

BCE also announced that it intends to amend its Shareholder Dividend Reinvestment and Stock Purchase Plan to provide, at the BCE Board's discretion, for the issuance of new common shares from treasury at a discount to the average market price of the common shares preceding the applicable dividend payment date.