Rogers and BCE agree to jointly own Glentel
Rogers Communications Inc. and BCE Inc. have reached an agreement to jointly own Glentel’s retail distribution outlets in Canada as soon as BCE’s acquisition of Glentel is completed.
Rogers said that as part of the deal, it will withdraw its recently filed court application for an injunction pending closure of the agreement with BCE.
Glentel operates nearly 500 wireless outlets in Canada under various brands, including WirelessWave and Tbooth Wireless. Its outlets sell services from Rogers Wireless, Bell Mobility, and SakTel. The retailer also operates store-within-a-store kiosks at Target and Canadian Costco locations.
In this context, the word ‘kiosk’ means a free standing retail cubicle or hit.
In a statement, Rogers Communications wrote:
“This agreement means that customers across the country will continue to be able to choose a wide variety of wireless products and services at Glentel’s 494 retail locations across Canada, such as Wirelesswave, Tbooth wireless, Wireless etc., Target Mobile, and more.”
The agreement significantly reduces the cost of the acquisition for Bell, says Mr. Cope. (Photo: BCE Inc.)
On Wednesday, BCE Inc., Canada’s largest communications company, announced that it would divest 50% of its ownership stake in Glentel Inc., a Burnaby-based independent retailer of mobile phone services, to Rogers Communications, as soon as Bell (which belongs to BCE Inc.) has acquired Glentel. The acquisition is expected to be completed in the first half of 2015.
Under the agreement, Rogers and Bell will own 50% each of Glentel shares, representing half of Glentel’s retail operations. In exchange, Rogers will pay 50% of the Glentel transaction to Bell in cash following the successful completion of the acquisition.
As announced in November, Bell will purchase all Glentel’s approximately 22.4 million fully diluted common shares for about $594 million.
President and CEO of BCE Inc. and Bell Canada, George Cope, said:
“Providing continued access to Glentel’s first-class wireless retail operations for both competitors, this agreement greatly reduces Bell’s cost to acquire Glentel and helps ensure the transaction closes as scheduled to the benefit of Glentel shareholders. Glentel’s distribution scope and renowned service and sales capabilities remain key to Bell’s strategy to accelerate wireless in Canada while delivering an improved customer experience.