Canadian telecom firm BCE said on Monday it would buy internet services provider Ziply Fiber for C$5 billion ($3.60 billion) in cash, as it looks to expand its fiber footprint in the United States.
BCE’s shares fell about 9% as some analysts said the proceeds from selling the company’s stake in Maple Leaf Sports & Entertainment will not be used to pay down debt.
BCE also said it plans not to increase its dividend till its debt is lowered and in line with its targets.
Bell, a BCE unit, will assume all of U.S.-based Ziply’s debt of around C$2 billion. The acquisition is expected to close in the second half of 2025.
The buyout underscores Bell’s attempts to boost its fiber and internet business in the U.S. amid stiff competition in Canada.
Bell sold its stake in Maple Leaf Sports to Rogers Communications in September as it grapples with a decline in its legacy phone and news business.
After the Ziply deal closes, Bell said it would be poised to expand its fiber footprint to more than 12 million locations across North America by 2028.
Source: Reuters.com