Acquisition of GLENTEL – May 20, 2015
On May 20, 2015, BCE completed the acquisition of mobile products distributor GLENTEL Inc. and subsequently divested 50% of GLENTEL to Rogers Communications Inc.
GLENTEL was delisted from the Toronto Stock Exchange (TSX) on May 22, 2015.
Information for GLENTEL shareholders
As specified under the plan of arrangement, GLENTEL shareholders were entitled to elect and receive, for each share held, either:
- $26.50 per share in cash, subject to proration (cash consideration); or
- 0.4974 of a BCE common share per share, subject to proration (share consideration)
Any election by a shareholder was subject to proration and rounding such that the total consideration paid by BCE was comprised of 50% in cash and 50% in BCE common shares. The share consideration was based on BCE’s 5-day volume weighted average trading price on May 19, 2015 (the day before the close of the transaction) of $53.19. As a result, shareholders may have ultimately receive a combination of cash and BCE common shares by operation of the proration provisions of the plan of arrangement.
The table below indicates the entitlement received by former GLENTEL shareholders for each GLENTEL share. The proration was only applied to the share consideration.
|Cash consideration||$26.50 in cash|
|Share consideration||Approx. 0.3127 of a BCE common share and $9.84 in cash|
|No valid election||$26.50 in cash|
A former GLENTEL shareholder who elected to receive only the share consideration but, because of proration, received a combination of BCE common shares and cash, was required to make a joint election to obtain a full or partial tax deferral. tax instruction letter
Tax instruction letter and questionnaire for former GLENTEL shareholders
tax instruction letter to defer the tax arising from the disposition of your GLENTEL shares pursuant to the plan of arrangement.
If you were an Eligible Holder (as defined in the management information circular) and wished to make a tax election for income tax purposes in respect of your GLENTEL shares disposed of pursuant to plan of arrangement, you had to complete a short questionnaire within 90 days after the disposition of your common shares. Within 30 days of receipt of your completed questionnaire, a tax election form signed by BCE containing your information was provided to you.