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Group Telecom gets fiberlink business from Moffat

GT Group Telecom Inc., Toronto, has acquired the competitive access provider business of Winnipeg-based Moffat Communications Ltd. in a cash and stock transaction valued at approximately $118 million....


May 1, 2000  


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GT Group Telecom Inc., Toronto, has acquired the competitive access provider business of Winnipeg-based Moffat Communications Ltd. in a cash and stock transaction valued at approximately $118 million.

The transaction will see Group Telecom pay $68 million cash for Moffat’s fiber assets and provide Moffat with 1,667,000 shares in Group Telecom with a current value of approximately $50 million.

“This acquisition further strengthens Group Telecom’s presence to serve customers in the Edmonton and Winnipeg markets and accelerates our national expansion plans considerably,” said Dan Milliard, CEO of Group Telecom, who added that the transaction is expected to add approximately $100 million of property, plant and equipment to the company’s balance sheet.

The transaction will provide the company with approximately 600 route kilometres in Edmonton and Winnipeg. Moffat’s 240 on-net buildings, its customers and the employees of its competitive access provider business will also be rolled over to Group Telecom.


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