- Administrative aspects
- MTS acquisition
- Bell Aliant privatization
- Glentel acquisition
- Transactions and cost base
- Tax information
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On May 2, 2016, BCE announced that it would acquire all of the issued and outstanding common shares of Manitoba Telecom Services Inc. (MTS) in a transaction valued at approximately $3.9 billion.
On March 17, 2017, BCE announced the completion of its acquisition of all of the issued and outstanding common shares of MTS. The transaction was completed through a plan of arrangement. A detailed description of the plan of arrangement is provided in the MTS management information circular dated May 26, 2016, available at www.sedar.com.
MTS common shares were delisted from the Toronto Stock Exchange (TSX) on March 20, 2017.
Information for MTS Shareholders
As specified under the plan of arrangement, MTS shareholders were entitled to elect and receive, for each MTS common share held, either:
- $40.00 in cash, subject to proration (the Cash Consideration); or
- 0.6756 of a BCE common share, subject to proration (the Share Consideration)
The Share Consideration was based on BCE's 20-day volume weighted average price of $59.21 on April 29, 2016 (the last trading day prior to the announcement of the transaction).
Shareholders could only elect to receive the Cash Consideration or the Share Consideration for all their shares; shareholders could not elect to receive a combination of cash and shares.
Any MTS shareholder who did not properly make an election by 5 p.m. eastern time on March 14, 2017 was deemed to have elected to receive, for each MTS common share, the Cash Consideration, subject to proration and rounding.
The aggregate consideration of approximately $2.9 billion paid to MTS shareholders was 45% in cash and 55% in BCE common shares. BCE funded the approximate $1.34 billion cash component through debt financing and issued 27,642,714 BCE common shares to fund the equity component.
The table below indicates the entitlement received by MTS shareholders for each MTS common share. The pro-ration was only applied to the Cash Consideration option.
|Cash Consideration||$20.3977 in cash and 0.3311 of a BCE common share|
|Share Consideration||0.6756 of a BCE common share|
|No valid election||$20.3977 in cash and 0.3311 of a BCE common share|
No fractional shares were issued and BCE paid out fractional shares in cash.
An MTS shareholder who elected to receive Share Consideration or Cash Consideration but, because of proration, received a combination of BCE common shares and cash, will be required to make a joint election to obtain a full or partial tax deferral. The tax instruction letter provides certain instructions on how to complete the tax election.
Tax Instruction Letter and Questionnaire for Former MTS Shareholders
If you are a Canadian resident and wish to make a tax election for income tax purposes in respect of your MTS common shares disposed of pursuant to the plan of arrangement, you must complete a short questionnaire within 90 days after the disposition of your common shares. Within 30 days of receipt of your completed questionnaire, a tax election form signed by BCE containing your information will be provided to you.
The questionnaire and a tax instruction letter can be accessed through a secure website established by BCE specifically to assist MTS shareholders with the tax election process. The completed questionnaire must be submitted online. Please visit the tax election website.
Further assistance with the tax election questionnaire
For assistance on how to complete the tax election questionnaire, please contact the Technical Assistance Helpline at: 416-476-2700 or toll-free at 1-844-499-8687.
- Press release: BCE announces agreement to acquire Manitoba Telecom Services (MTS) (May 2, 2016)
- Analyst presentation: BCE Acquisition of MTS Analyst Conference Call (May 2, 2016)
- Press release: Bell welcomes MTS shareholders' approval of acquisition (June 23, 2016)
- Press release: Bell and MTS to expand broadband service in Northern Manitoba (July 7, 2016)
- Press release: Bell MTS to accelerate Winnipeg's "Innovation Alley" with Canada's fastest broadband Internet and wireless services (September 27, 2016)
- Press release: CRTC approves transfer of MTS broadcasting licence to Bell (December 20, 2016)
- Press release: Bell acquisition of MTS receives final regulatory approvals from ISED and Competition Bureau, transaction set to close on March 17 (February 15, 2017)
- Press release: BCE completes acquisition of Manitoba Telecom Services: Bell MTS launches in Manitoba today, activates province-wide investment and innovation plan (March 17, 2017)
- Tax instruction letter (March 17, 2017)