Thursday, December 23, 2010
Bell Aliant completes agreement with Newfoundland Power and Fortis to purchase poles
Halifax, NS - Bell Aliant Regional Communications Income Fund (Bell Aliant or the Fund) (TSX: BA.UN), today announced completion of an agreement with Newfoundland Power Inc. and Fortis Inc. whereby Bell Aliant will acquire certain poles for approximately $55 million.
As part of Bell Aliant’s strategy to reset its cost structure this transaction will reduce Bell Aliant’s overall annual cash outlays, improving EBITDA and free cash flow going forward.
While Bell Aliant will account for this transaction in the 2010 fiscal year, it remains subject to final regulatory approval from the Newfoundland and Labrador Board of Commissioners of Public Utilities, which is expected by the second quarter of 2011.
Caution concerning forward-looking statements
This news release contains forward-looking statements relating to the expected final approval of the aforementioned pole transaction by the Newfoundland and Labrador Board of Commissioners of Public Utilities (the “PUB”) in 2011. Such forward-looking statements describe management’s expectations at December 23, 2010. These statements are subject to important known and unknown risks, assumptions, uncertainties that may cause actual events to differ materially from those expressed in the forward-looking statements, including the successful completion of the regulatory approval process by the PUB. All forward-looking statements in this news release are qualified by these cautionary statements, and there can be no assurance that the results or events predicted will be realized. Except as may be required by Canadian securities laws, Bell Aliant disclaims any intention and assumes no obligation to update or revise any forward-looking statement even if new information becomes available, as a result of future events or for any other reason. Readers should not place undue reliance on any forward-looking statements.
About Bell Aliant
Bell Aliant (TSX: BA.UN) is one of North America's largest regional communications providers and the first company in Canada to cover an entire city with fibre-to-the-home (FTTH) technology with its FibreOP™ services. Through its operating entities it serves customers in six Canadian provinces with innovative information, communication and technology services including voice, data, Internet, video and value-added business solutions. Through its xwave offices, Bell Aliant also provides IT professional services and advanced technology solutions. Bell Aliant's employees deliver the highest quality of customer service, choice and convenience.
For more information contact: