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Nov 23 (Reuters) - Canadian telecom company Manitoba Telecom
Services Inc MBT.TO said on Monday it had agreed to sell its
fiber-optic unit, Allstream Inc, to U.S.-based Zayo Group
Holdings Inc ZAYO.N for C$465 million ($347.4 million) in
cash.
Zayo said it was interested in Allstream's metro fiber
network concentrated in Canada's top five metropolitan markets,
Toronto, Montreal, Vancouver, Ottawa and Calgary.
MTS said it expected to realize net proceeds of about C$425
million after closing costs.
Winnipeg-based Manitoba said in May it would cut jobs at
Allstream by 20-30 percent as part of its plan to reduce its
capital expenditure.
The company had also slashed its annual dividend as it faced
tough competition in the sparsely populated Canadian province.
CIBC World Markets Inc and TD Securities Inc are Manitoba's
financial adviser and Stikeman Elliott its legal adviser.
RBC Capital Markets is Zayo's financial adviser and Gibson
Dunn & Crutcher LLP and Borden Ladner Gervais LLP its legal
advisers.
($1 = C$1.34)