The sale of the telco’s stake in the Toronto sports empire to Rogers will cover $4.2 billion of the $5-billion cash price of Ziply Fiber, which provides wired internet services in the U.S. Northwest, Bell announced. It’s also freezing its annual dividend at $3.99 a share at least through 2025 and inviting stockholders to take their dividends in shares rather than cash. Ziply is owned by private equity firms, including Searchlight Capital and WaveDivision Capital. (The Logic)
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The sale of the telco’s stake in the Toronto sports empire to Rogers will cover $4.2 billion of the $5-billion cash price of Ziply Fiber, which provides wired internet services in the U.S. Northwest, Bell announced. It’s also freezing its annual dividend at $3.99 a share at least through 2025 and inviting stockholders to take their dividends in shares rather than cash. Ziply is owned by private equity firms, including Searchlight Capital and WaveDivision Capital. (The Logic)
Talking point: Bell’s share price had already fallen this year and sank nearly 10 per cent more on Monday, despite Bell CEO Mirko Bibic’s touting the Ziply deal as a bold expansion of its fibre-optics expertise outside Canada. The transaction is “perplexing” for Bell, said Scotiabank analyst Maher Yaghi, since selling bundled services is key in the sector and Bell will have a hard time doing that in the United States. Bell will assume $2 billion of Ziply’s debt, and the deal is expected to close in the second half of 2025.
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