FULL TEXT-Bell Canada Intl in Taiwan deal
(Full text of press release from Canadian Corporate News)
JANUARY 4, 1999
Bell Canada International Affiliate Acquires Significant Interest in Taiwanese PCS Operator
MONTREAL, QUEBEC--Bell Canada International Inc. (''BCI'') announced today that its affiliate, KG Telecom, a PCS
operator in the northern region of Taiwan, has reached an agreement to acquire a 45 percent interest in Tuntex
Telecommunications Co. Ltd. (''Tuntex''), a PCS operator in the central and southern regions of Taiwan. The total
population of the three regions is 21.5 million. KG Telecom will acquire the interest for NT$4.95 billion (approximately
US$153 million). The payment is spread over four quarters in 1999 and is expected to be funded with internally generated
funds and new borrowings. Following the acquisition, KG Telecom will be the largest single shareholder of Tuntex.
KG Telecom and Tuntex both commenced service about one year ago and at the end of 1998 had approximately 360,000
and 200,000 subscribers respectively. The two companies already have a roaming agreement between their networks.
In addition to its existing 10 percent interest in KG Telecom, BCI also has an option to increase its equity interest in KG
Telecom to a total of 20 percent when current foreign ownership restrictions are relaxed by the Taiwanese government.
BCI is a leading provider of telecommunications services in markets outside of Canada. The corporation owns, develops
and operates telecommunications systems with a focus on the wireless sector. A subsidiary of BCE Inc., Canada's largest
telecommunications company, BCI is listed on the Montreal and Toronto stock exchanges under the symbol BI, and on the
Nasdaq National Market under the symbol BCICF.
FOR FURTHER INFORMATION PLEASE CONTACT:
Bell Canada International
Anne Duprat
Director, Investor Relations
(514) 392-2273
anne.dupratibm.net |
