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Monday, 05/02/2016 8:27:30 AM

Monday, May 02, 2016 8:27:30 AM

Post# of 120381
7:32 am BCE to acquire Manitoba Telecom Services for CAD$40/share, expects immediate free-cash-flow accretion (BCE) :
•Transaction has total enterprise value of ~CAD$3.9 bln•BCE to acquire all issued and outstanding common shares of MTS for ~CAD$3.1 bln and assume outstanding net debt of ~CAD$0.8 bln

•MTS shareholders will be able to elect to receive $40 in cash or 0.6756 of a BCE common share for each MTS common share, subject to pro-ration such that the aggregate consideration will be paid 45% in cash and 55% in BCE common shares
•Transaction expected to close at the end of 2016 or early 2017
•Bell plans to invest CAD$1 bln in capital over 5 years after the transaction closes to expand its broadband networks and services throughout Manitoba
•BCE expects immediate free-cash-flow accretion
•The agreement between BCE and MTS provides for a non-solicitation covenant on the part of MTS and a right in favour of BCE to match any superior proposal. If BCE does not exercise its right to match, BCE would receive a termination fee of $120 mln in the event the agreement is terminated as a result of a superior proposal
•A conference call for financial analysts will be held May 2 at 8:30 am ET

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