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)