BCE to buy Manitoba Telecom in C$3.1 bln deal

Mon May 2, 2016 7:49am EDT
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May 2 (Reuters) - Canadian telecom and media company BCE Inc said it would buy Manitoba Telecom Services Inc for about C$3.1 billion ($2.5 billion) to expand its services in the western Canadian province.

BCE will pay C$40 per share, which represents a premium of 22 percent to Manitoba Telecom's close on Friday.

Montreal-based BCE will also assume the company's outstanding debt of about C$800 million.

BCE said it would divest about one-third of Manitoba Telecom's postpaid wireless subscribers to Telus Corp following the completion of the deal. ($1 = 1.2517 Canadian dollars) (Reporting by Arathy S Nair in Bengaluru; Editing by Maju Samuel)