This news release contains forward-looking statements. For
information regarding the related risk factors and assumptions
please see the section entitled "Caution Concerning Forward-Looking
Statements" later in this release.
BURNABY, BC, May 20, 2015 /CNW/ - GLENTEL Inc. (TSX: GLN)
("GLENTEL") and BCE Inc. ("BCE") today announced that
they have completed their previously announced transaction pursuant
to which BCE acquired all of the issued and outstanding common
shares of GLENTEL, the Canadian-based multi-carrier mobile products
distributor.
BCE acquired all of GLENTEL's common shares for a total
consideration of approximately $594
million. GLENTEL shareholders were entitled to elect and
receive either $26.50 in cash, or
0.4974 of a common BCE share, for each GLENTEL common share,
subject to pro-ration. As a result of pro-ration, GLENTEL
shareholders that elected cash will receive $26.50 per GLENTEL share, shareholders that
elected shares will receive approximately 0.3127 BCE common shares
and $9.84 in cash per GLENTEL share
and shareholders that did not make a valid election will receive
$26.50 in cash. BCE funded the
approximate $295.6 million cash
component with available liquidity and issued approximately
5,548,908 BCE common shares to fund the equity component. The
acquisition gave BCE ownership of 100% of GLENTEL's 22,311,665
common shares.
A former GLENTEL shareholder who has elected to receive only
shares but, because of pro-ration, receives a combination of BCE
common shares and cash, will be required to make a joint election
to obtain a full or partial tax deferral. A tax instruction letter
providing certain instructions on how to complete the tax election
may be obtained at BCE's website
http://www.bce.ca/investors/shareholder-info/glentel-acquisition.
GLENTEL is expected to be delisted from the Toronto Stock
Exchange effective at the close of business on May 22, 2015 and has applied to cease to be
a reporting issuer under applicable Canadian securities laws.
Further to an agreement dated December
24, 2014, BCE will later today divest 50% of its ownership
interest in GLENTEL to Rogers Communications Inc. following closing
of the acquisition.
About GLENTEL
Based in Burnaby, BC, Canada, GLENTEL is a provider of innovative
and reliable wireless communications services and solutions,
offering a choice of network carrier and wireless or mobile
products and services to consumers and commercial customers.
GLENTEL is a multicarrier mobile phone retailer in Canada and Australia. In the
United States, GLENTEL operates two of the six National
Premium Retailers for Verizon Wireless. To its business and
government customers, GLENTEL offers wireless systems and hardware,
rental equipment, and system implementation services. GLENTEL
celebrated its 50th anniversary in 2013.
At March 31, 2015, GLENTEL
employed over 4,300 employees and operated more than 1,245
locations, including 370 retail and business locations in
Canada, 734 locations in
the United States; and 141 retail
locations in Australia and
the Philippines.
Caution Concerning Forward-Looking Statements
Certain statements made in this news release are forward-looking
statements, including, but not limited to, the expected delisting
of the GLENTEL common shares and other statements that are not
historical facts. Forward-looking statements are typically
identified by the words assumption, goal, guidance, objective,
outlook, project, strategy, target and other similar expressions or
future or conditional verbs such as aim, anticipate, believe,
could, expect, intend, may, plan, seek, should, strive and will.
All such forward-looking statements are made pursuant to the "safe
harbour" provisions of applicable Canadian securities laws and of
the United States Private Securities Litigation Reform Act of
1995.
Forward-looking statements, by their very nature, are subject to
inherent risks and uncertainties and are based on several
assumptions, both general and specific, which give rise to the
possibility that actual results or events could differ materially
from our expectations expressed in or implied by such
forward-looking statements. As a result, we cannot guarantee that
any forward-looking statement will materialize and we caution you
against relying on any of these forward-looking statements. The
forward-looking statements contained in this news release describe
our expectations at the date of this news release and, accordingly,
are subject to change after such date. Except as may be required by
Canadian securities laws, we do not undertake any obligation to
update or revise any forward-looking statements contained in this
news release, whether as a result of new information, future events
or otherwise. Forward-looking statements are provided herein for
the purpose of giving information about the proposed transaction
referred to above and its expected impact. Readers are cautioned
that such information may not be appropriate for other
purposes.
SOURCE Glentel Inc.