This article was last updated on April 16, 2022
Canada: 
Oye! Times readers Get FREE $30 to spend on Amazon, Walmart…
USA: Oye! Times readers Get FREE $30 to spend on Amazon, Walmart…
Canada’s largest telecommunications company, BCE Inc., has announced its plan to buy mobile phone retailer, Glentel Inc., for almost C$594 million ($520 million) in cash and stock. Majority has called the deal a defensive one, prompting a muted investor enthusiasm as BCE shares rose a little around 0.9 percent at C$53.79 at midmorning on Friday.
Operating under the Bell brand, BCE, is considered to be fighting to win market share against two other dominant national wireless providers, namely Rogers Communications Inc. and Telus Corp., along with other regional rivals. In his remarks, Desjardins analyst, Maher Yaghi, alleged that “we like the acquisition as it is a defensive move that secures Bell’s long-term distribution capabilities and solidifies its important retail presence in Canada.” Glentel sells mobile phones under the WirelessWave/Wave Sans Fil, Tbooth wireless and WIRELESS etc. banners across 494 stores in Canada. Currently, Glentel offers wireless plans with Bell and Rogers, along with its budget brands like Fido and Chatr, SaskTel and Virgin Mobile. In addition to that, Glentel also sells mobile phones in Australia, the Philippines and the United States.
Speaking about the figures, Glentel’s shareholders are anticipated to receive an additional C$26.50 per share, i.e. more than the double of their current stock trading before the deal. In response to the news, Glentel’s shares jumped to 103.6 percent to C$25.96 on Friday morning. Canaccord Genuity was Glentel’s financial adviser, while Owen Bird Law Corp was its legal adviser.
Be the first to comment