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Telus pushes ahead with bid to buy Microcell

Telus Corp. today confirmed its intention to purchase all of the issued and outstanding publicly traded shares and...


May 17, 2004  


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Telus Corp. today confirmed its intention to purchase all of the issued and outstanding publicly traded shares and warrants of Microcell Telecommunications Inc.

The total equity value of the transaction is approximately $1.1 billion. The total debt less cash of Microcell as at March 31, 2004 pro-forma for closing of Microcell’s rights offering and the exercise of privately held warrants of Microcell is approximately $54 million.

"Telus’ bid to acquire Microcell is consistent with our strategy to focus on the growth markets of wireless, IP and data and increases the speed at which we can enhance our position, particularly in Quebec and Ontario given the location of Microcell’s customer base," said Darren Entwistle, President and CEO of Telus.

"If our bid is successful, this transaction will not only provide an attractive return to Microcell security holders, but also a positive future for Microcell’s customers, to whom we look forward to providing our high quality service experience. This transaction would also be a positive development for the future Canadian ownership of the Canadian wireless industry."

The prices offered represent a premium of 38.1% and 36.5% over the closing prices of the Class A Shares and Class B Shares on the Toronto Stock Exchange, respectively, on the last trading day prior to the public announcement of the intended bid.


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