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JANUARY 7, 1997
Manitoba Telecom Completes Initial Offering
WINNIPEG, MANITOBA--Manitoba Telecom Services Inc., (MTS) of
Winnipeg, Manitoba has completed an initial public offering of
70,000,000 Common Shares including 48,454,344 Common Shares
represented by Instalment Receipts. Gross proceeds of the
offering total $910,000,000.
The underwriters for the issue are CIBC Wood Gundy Securities
Inc., RBC Dominion Securities Inc., Midland Walwyn Capital Inc.,
Nesbitt Burns Inc., ScotiaMcleod Inc., TD Securities Inc., Gordon
Capital Corporation, Levesque Beaubien Geoffrion Inc., Bunting
Warburg Inc., First Marathon Securities Limited, Wellington West
Capital Inc., HSBC James Capel Canada Inc. and Bieber Securities
Inc.
Manitoba Telecom Services Inc. is the only full service
telecommunications provider in Manitoba with communication
capabilities to other regions in Canada and internationally.
Manitoba Telecom Services Inc. offers an extensive range of
telecommunications services in local, long distance, wireless,
directory and on-line multi media markets to businesses, public
sector organizations and residential customers.
The Common Shares and Instalment Receipts are listed for trading
on the Toronto, Montreal, and Winnipeg Stock Exchanges under the
symbol MBT and MBT.IR respectively.
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The Company is:
*the *only* provider of local wireless
*Has 86% market share of Long Distance
*Currently has 2/3 of the Cellular Market
*Largest Customer Base for OnLine Service
*Has held the dominant teleco position in Manitoba since 1906
*One of the first Provinces (behind New Brunswick) to deploy ATM and Digital switching across the province.
The stock is currently trading at 14.35 $CDN on the TSE (symbol:MBT)
which is a PE of approximately 13 which is the lowest of all other Canadian Telecos (whose average PE is ~16.5).
Should we all be buying this stock? Sounds too good to be true... doesn't it? Let's start a thread to hash out the *Real* potential of this teleco.
We should be asking some of the following questions:
1. What effect will the recent deregulation of long distance carriers have on the revenues and growth of Manitoba Telecom.
2. Will cable internet access reduce market share significantly of the teleco online industry?
3. With the introductin of PCS digital cellular will the analog cellular market be eroded?
Graham Dellaire |
