MONTREAL, March 9 /CNW Telbec/ - Prestige Telecom Inc. ("Prestige" or "the Company") (TSX-V: PR) is pleased to announce that it has entered into a non binding letter of intent to acquire all the issued and outstanding shares of Majetel Inc., a Quebec-based company specializing in tower construction and maintenance and project management services for the Canadian wireless telecommunications industry. The transaction is subject to regulatory approval, due diligence, execution of a definitive share purchase agreement and other customary closing conditions. The transaction is expected to close on March 31, 2010. A more comprehensive press release will be issued upon closing of the transaction.
For the last fifteen years, Majetel has been a leading service provider to the telecommunications industry. The company generates revenues from its activities in Quebec, Ontario and New Brunswick, and has 45 experienced field employees. Management of Majetel will remain with the company to ensure a smooth transition.
"This acquisition will be positive for our revenues and is part of our growth strategy of acquiring companies that can increase our service offering capabilities and expand our qualified workforce across Canada," said Pierre Yves Methot, Chairman and CEO of Prestige Telecom. "The integration of Majetel into Prestige will significantly strengthen our tower construction and maintenance capabilities in Quebec, as well as providing us with new customers and entry into the wind energy business. We believe this acquisition to be immediately accretive to Prestige, particularly with new potential business opportunities stemming from the new wireless entrants."
About Prestige Telecom Inc.
Prestige Telecom is a leading provider of network engineering, materials furnishing, installation and support services (commonly referred to as EF&I services) required to construct, operate and maintain wireline, wireless and cable television networks. Prestige assists telecommunications original equipment manufacturers and service providers to engineer, install and upgrade their infrastructures to support enhanced voice, high speed data and video services. Prestige Telecom also provides technical and aerial services to the Canadian communications and broadcast industries, including tower supply, engineering, site construction, and infrastructure and equipment maintenance.
In Canada, Prestige has over 950 professional and technical personnel operating from seventeen (17) service locations in nine (9) provinces. Prestige's head office is located in Baie d'Urfé (Montreal), Quebec.
This press release contains certain forward-looking statements with respect to the Company. Such forward-looking statements are dependent upon a certain number of factors and are subject to risks and uncertainties. Management does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information or future events, except when required by the regulatory authorities.
The TSX Venture Exchange accepts no responsibility for the adequacy or the accuracy of this press release.
SOURCE PRESTIGE TELECOM INC.
For further information: For further information: Maryanne Golden, director - corporate affairs of Prestige, Prestige Telecom Inc, (514) 457-4488, Ext. 273, firstname.lastname@example.org; www.prestige-tel.com