Stock Symbol: MBT
WINNIPEG, MB, Sept. 13, 2012 /CNW/ - Manitoba Telecom Services Inc. (TSX: MBT) (the "Company" or "MTS Allstream") and its Board of Directors announce today that it is undertaking a wide-ranging strategic review of its Allstream business.
Legislative amendments were recently passed by the Federal Government in order to allow increased foreign investment into certain telecommunications companies, such as Allstream. The Company has welcomed this positive development and believes it will strengthen the Canadian economy by supporting more investment and greater innovation in Canada's telecommunication sector. The Company views this recent change in applicable laws as a logical opportunity to consider a full range of alternatives that could be undertaken to further enhance Allstream's growing competitiveness, which in turn could improve the long-term position of the Company's stakeholders.
"With a clear strategy, strong traction in the growing market for IP services, and seven consecutive quarters of year-over-year EBITDA growth, Allstream is the strongest it has been in years," said Pierre Blouin, Chief Executive Officer. "For this reason, it is important to understand that this process is wide-ranging and does not assume that any significant change is necessary or desirable."
The strategic review process will occur over the course of the coming year. The Company does not intend to disclose any developments with respect to this strategic review process until such time as the Board approves a particular course of action or otherwise determines that further disclosure is appropriate or required. There is no assurance or expectation that any changes will be made as a result of this process.
The Company will obtain the assistance of external legal advisors during this exploratory process, as well as CIBC World Markets and Morgan Stanley as financial advisors. The Board of Directors is also forming a Strategic Committee to oversee this review.
Manitoba Telecom Services Inc. (MTS Allstream)
MTS Allstream is one of Canada's leading national communication solutions companies, providing innovative communications for the way Canadians live and work today. The company has more than 100 years of experience, with 5,500 employees across Canada. MTS Allstream's business is dynamic and consists of two operating divisions. In Manitoba, MTS is the leading full-service telecommunications provider for residential and business customers. MTS's suite of services include the latest in wireless technology, broadband services, IPTV, voice services, home security, and an extensive range of business solutions. Across Canada, Allstream is a leader in IP communications and is the only national provider that focuses exclusively on the business telecommunications market. MTS Allstream has nearly two million customer connections spanning business customers across Canada and residential consumers throughout the province of Manitoba. The company's extensive national fibre optic network spans more than 30,000 kilometres. MTS Allstream has spent 11 consecutive years on the Jantzi Social Index for leadership in social responsibility and is the recipient of the 2011 Governance Gavel Award from the Canadian Coalition for Good Governance, recognizing clear and effective public disclosure and leading governance practices. MTS Allstream's common shares are listed on the TSX (trading symbol: MBT). Customers, stakeholders and investors who want to learn more about MTS Allstream are encouraged to visit: www.mtsallstream.com. For more information about MTS's products and services, please visit www.mts.ca. For more information about Allstream's products and services, please visit www.allstream.com.
Forward-looking Statements Disclaimer
This news release includes forward-looking statements and information (collectively, the "statements") about the Company's corporate direction, business opportunities, operations, financial objectives and future financial results and performance that are subject to risks, uncertainties and assumptions. As a consequence, actual results in the future may differ materially from any conclusion, forecast or projection in such forward-looking statements. Therefore, forward-looking statements should be considered carefully and undue reliance should not be placed on them. Examples of statements that constitute forward-looking information may be identified by words such as "believe", "expect", "project", "should", "anticipate", "could", "target", "forecast", "intend", "plan", "outlook", "see", "set", "pending", and other similar terms.
Factors that could cause anticipated opportunities and actual results to differ materially include, but are not limited to, matters identified in the "Material assumptions" section below, the "Risks and uncertainties" section, elsewhere in the Company's 2011 Annual MD&A and 2011 Annual Information Form, all of which are available on SEDAR at www.sedar.com.
Please note that forward-looking statements reflect Management's expectations as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE: MTS Allstream
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