Rogers Communications To Form JV With BCE For Glentel's Canada Retail Operations

(RTTNews) - Canadian media and communications company Rogers Communications Inc., (RCI, RCI_A.TO, RCI_B.TO) said it has reached an agreement with Canadian communications company BCE Inc (BCE, BCE.TO), under which the two companies will jointly own wireless retailer Glentel Inc.'s (GLN.TO) Canadian retail distribution outlets on completion of BCE's pending acquisition of Glentel.

Earlier in the day, BCE said it will divest 50 percent of its ownership stake in Glentel to Rogers Communications, following the closing of its acquisition of Glentel.

Under the agreement, Bell and Rogers will each own 50 percent of Glentel shares, representing 50 percent of Glentel's retail operations. In exchange, Rogers has agreed to pay in cash to Bell 50 percent of the Glentel transaction value following the successful closing of Bell's Glentel acquisition.

As part of the agreement, Rogers will withdraw its recently filed court application for an injunction, pending closure of the agreement with BCE.

As announced on November 28, Bell will acquire all of Glentel's about 22.4 million fully diluted common shares for a total consideration for Glentel's equity of about C$594 million. Including net debt and minority interest of nearly C$78 million, the total enterprise value of Glentel is about C$670 million.