May 2, 2016 / 11:52 AM / 2 years ago

BRIEF-BCE announces agreement to acquire Manitoba Telecom Services

May 2 (Reuters) - Bce Inc

* 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: Further company coverage: (Bengaluru Newsroom: +1-646-223-8780)

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