May 2 (Reuters) - Bce Inc BCE.TO
* Bce announces agreement to acquire manitoba telecom
services (mts)
* Will acquire all of issued and outstanding common shares
of mts for $40 per share
* Will fund cash component of transaction from available
sources of liquidity
* Mts will not declare any further dividends on its common
shares after its upcoming second-quarter 2016 dividend
* When transaction is completed, mts shareholders will own
approximately 3% of pro forma bce common equity
* Bce would receive a termination fee of $120 million in
event agreement is terminated as a result of a superior proposal
* Aggregate consideration will be paid 45% in cash and 55%
in bce common shares
* Transaction enterprise value of approximately $3.9 billion
* Transaction unanimously recommended by mts board of
directors
* To acquire all issued common shares of mts for
approximately $3.1 billion and assume outstanding net debt of
approximately $0.8 billion
* Bce inc says bell plans to invest $1 billion in capital
over 5 years after transaction closes
* Will issue approximately 28 million common shares for
equity portion of transaction
* A reverse break fee of $120 million would be payable by
bce to mts if transaction does not close in certain
circumstances
* 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
* Bce will fund cash component of deal from available
sources of liquidity,will issue about 28 million common shares
for equity portion of deal
Source text for Eikon: ID:nCNW3NVSva
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