Supports Bell's strategic focus on Canadian broadband network and service investment
MONTREAL, April 6 /CNW Telbec/ - BCE Inc. (TSX, NYSE: BCE) today announced it has completed the sale of its 22.1 million shares in satellite services company SkyTerra Communication Inc. following the acquisition of SkyTerra by private investment firm Harbinger Capital Partners. The sale yielded proceeds of approximately $111 million.
"The sale of our interest in SkyTerra is a perfect example of BCE's commitment to eliminate holdings in businesses that do not enhance the execution of Bell's strategic imperatives," said Siim Vanaselja, Chief Financial Officer for BCE and Bell Canada. "The proceeds of such transactions support Bell's strategy to invest in broadband network and service expansion while achieving a competitive cost structure."
Bell is making significant investments in Canadian broadband, including the recent launch of its world-leading HSPA+ wireless network and the rapid expansion of wireline fibre networks for consumer and business customers, including the rollout of fibre-to-the-home (FTTH) in Québec and Ontario this year.
Harbinger's take-private transaction was an all-cash merger in which Harbinger acquired SkyTerra common stock for US$5.00 per share, representing an approximate 56% premium over the average closing price of SkyTerra's common stock for the 30 days ended September 22, 2009, the last day before the announcement of the merger agreement. SkyTerra is a developer and supplier of mobile satellite communications services (MSS) based in Reston, VA. For more information, please visit www.skyterra.com.
BCE is Canada's largest communications company, providing the most comprehensive and innovative suite of communication services to residential and business customers in Canada. Operating under the Bell and Bell Aliant brands, the Company's services include telephone services, wireless communications, high-speed Internet, digital television, IP-broadband services and information and communications technology (ICT) services. BCE shares are listed in Canada and the United States. For corporate information on BCE, please visit www.bce.ca. For Bell product and service information, please visit www.bell.ca.
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