Frequently asked questions about the common share offer
WHAT DID I HAVE TO DO?
What did I receive for my Bell Aliant common shares if I did not make a valid election by the November 10, 2014 deadline for the compulsory acquisition?
Former Bell Aliant common shareholders whose shares were acquired by BCE through the compulsory acquisition who did not make a valid election by the November 10, 2014 deadline were deemed to have elected to receive $7.75 in cash and 0.4778 of a BCE common share.
I did not transfer my Bell Aliant common shares to BCE under the compulsory acquisition. What happens to my shares? Can I still receive payment?
Former Bell Aliant common shareholders whose shares were acquired by BCE through the compulsory acquisition who did not make a valid election prior to the November 10, 2014 deadline were deemed to have elected to receive $7.75 in cash and 0.4778 of a BCE common share.
If you are a former registered shareholder (meaning that you have a physical certificate representing your Bell Aliant common shares registered in your name), you must deliver your share certificate(s) to the transfer agent. Please join a letter confirming that you wish to exchange your Bell Aliant shares following BCE offer, and indicate your name, address and phone number:
AST Trust Company (Canada)
P. O. Box 1036
Adelaide Street Postal Station
Toronto, Ontario M5C 2K4
Attention: Corporate Actions
By registered mail, in person or by courier:
AST Trust Company (Canada)
1 Toronto Street
Toronto, Ontario M5C 2V6
Attention: Corporate Actions
If you wish to receive a share certificate for the BCE shares instead of a DRS statement (Direct Registration System), please mention it in your letter.
If your Bell Aliant common shares were held in an account with an investment dealer, broker, bank, trust company or other nominee, your shares should have been automatically transferred to BCE after the November 10, 2014 deadline and you should have received payment. If you have not received payment for your Bell Aliant common shares, you should contact your representative.
What if I have lost my Bell Aliant common share certificate(s)? What do I have to do to receive payment for my shares?
You should contact AST Trust Company (Canada), who will advise you on the requirements to replace the lost certificate(s). letter of transmittal , at the office specified above, in order to receive payment.
What if I still hold share certificates for Bell Aliant predecessor companies?
If you still hold certificates representing securities in one of Bell Aliant’s predecessors (including Bell Aliant Regional Communications Income Fund, Aliant, Bruncor, Island Tel, MT&T and New Tel), you may still make a demand for payment under letter of transmittal , at the office specified above, in order to receive payment.
How did BCE's offer impact my Bell Aliant dividends?
Bell Aliant had agreed to not declare the regular quarterly dividend that would have been payable on Bell Aliant common shares on October 6, 2014.
What are the Canadian federal income tax consequences of accepting BCE's offer?
If you were a resident of Canada and held your Bell Aliant common shares as capital property and you sold your Bell Aliant common shares pursuant to BCE’s offer, you realized a capital gain (or capital loss) to the extent that the proceeds of disposition of such Bell Aliant common shares exceed (or are less than) the total of your adjusted cost base of such Bell Aliant common shares and any reasonable costs of disposition. However, if you were an Eligible Holder and you received BCE common shares (whether pursuant to the Share Alternative , the Cash Alternative (in the event of pro-ration) or the Cash and Share Alternative ) you could, depending upon your circumstances, obtain a full or partial tax-deferred “rollover” by making a joint election with BCE pursuant to subsection 85(1) of the Tax Act (and the corresponding provisions of any applicable provincial legislation). If you elected the Share Alternative and you received only BCE common shares, you may in certain circumstances have obtained an automatic tax-deferred “rollover” and also be entitled to make a joint election. Please consult your tax advisor for more details.
If you are not a resident of Canada you generally were not subject to tax under the Tax Act on any capital gain realized on a disposition of your Bell Aliant common shares pursuant to BCE’s offer, unless your Bell Aliant common shares were “taxable Canadian property” and were not “treaty-protected property”.
The above is a brief summary of Canadian federal income tax consequences only and is qualified by the description of Canadian federal income tax considerations in Section 25 of the Circular, “Certain Canadian Federal Income Tax Considerations”. Former holders of Bell Aliant common shares were urged to consult their own tax advisors to determine the particular tax consequences to them.
What were the U S federal income tax consequences of accepting BCE's offer?
The exchange of Bell Aliant common shares for BCE common shares and/or cash pursuant to BCE’s offer was a taxable transaction for U S federal income tax purposes. Former U S holders of Bell Aliant common shares generally recognized a gain or loss equal to the difference, if any, between (a) the fair market value of any BCE common shares received in exchange for such Bell Aliant common shares, measured in U S dollars, plus the U S dollar value of any cash received in exchange for such Bell Aliant common shares and (b) such U S holder’s adjusted tax basis in the Bell Aliant common shares. Any gain or loss recognized upon the exchange was generally treated as capital gain or loss.
A non-U S holder was generally not subject to U S federal income tax on gain recognized on exchange of Bell Aliant common shares pursuant to BCE’s offer unless the gain was “effectively connected” with the non-U S holder conduct of a trade or business in the United States or the non-U S holder was an individual present in the United States for 183 or more days in the taxable year of the exchange, and certain other requirements were met.
You were urged to consult your own tax advisors to determine the particular tax consequences to you. For a brief summary of certain U S federal income tax consequences of accepting the offer, see Section 26 of the Circular, “Certain United States Federal Income Tax Considerations”.
Where could I find the tax instruction letter and Tax Election forms?
If you were a Canadian resident and wished to make a tax election for income tax purposes in respect of your Bell Aliant common shares disposed of pursuant to the BCE offer, you were required to 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 was provided to you.
Who can I call for more information?
Any questions may be directed to AST Trust Company
AST Trust Company (Canada):
Toll free in North America: 1-866-271-6893
Outside of North America: 1-416-682-3860