Merger news; difficult to evaluate without more information:
biz.yahoo.com
Monday May 17, 9:58 am Eastern Time
Company Press Release
SOURCE: I.D. Internet Direct Ltd.; Look Communications Inc. I.D. Internet Direct and Look Communications merge their operations high-speed data transmisssion capability added
TORONTO/MONTREAL, May 17 /CNW-PRN/ - Canada's largest independent Internet service provider (ISP), I.D. Internet Direct Ltd. (VSE:IDX- news), and Look Communications Inc. today announced that they have signed a term sheet to amalgamate their operations. Using a Multipoint
Distribution System (MDS), better known as ''wireless cable'', Look
currently offers wireless digital television services in Ontario and
Quebec, and is in the process of introducing high-speed Internet
services in Ontario. Once the amalgamation is complete, Look's broadband
MDS infrastructure will accelerate I.D. Internet Direct's plan to market
high-speed data transmission services while both entities will be able
to offer their customers a new integrated suite of services.
Both Guy Crevier, Chairman of the Board of Look Communications and John
Nemanic, President and C.E.O. of I.D. Internet Direct expressed their
enthusiasm.
''Look allows us to further expand our presence in the two largest
markets in Canada and, most important, Look also has a tremendous
broadband network that will allow us to quickly offer high-speed data
services to our customers'', said John Nemanic.
Guy Crevier added, ''This is certainly exciting news for our clients. As
with other competitors in the market today, it means that our current
and future customers will benefit from a bundled offer. We'll bring them
a one-stop-shop of communications services including high-speed data
services, TV broadcasting, Internet access and Web-related services.''
I.D. Internet Direct was incorporated in 1995 and rapidly established
itself as a leading independent ISP in Canada. From an initial 200
customers, its subscriber base has grown to over 127,000 today through
organic growth and acquisitions, and has become Canada's largest ISP not
affiliated with a telecommunications or cable company.
I.D. Internet Direct plans to take data services beyond Internet access.
As witnessed recently in the United States, certain major telecom
carriers have selected the MDS platform as an alternative mean to
increase bandwidth and to accommodate emerging data services including
video-over-data, IP telephony and home automation that require
high-speed connectivity. Digital MDS used by Look is one way for I.D.
Internet Direct to have access to readily deployed infrastructure and
leading edge technology.
I.D. Internet Direct is presently evaluating different financing
alternatives and CIBC World Markets has already confirmed that it
intends to sponsor I.D. Internet Direct in a listing of shares on NASDAQ
and on the Toronto Stock Exchange.
Look Communications -- and its LOOK(TM) trademark -- is an innovative
digital television alternative to cable. The Canadian Radio-television
and Telecommunications Commission (CRTC) awarded Look Communications a
broadcast distribution licence for Southern Ontario in August 1997 and
for Eastern Ontario and Quebec in February 1998. The company launched
its operations in the Greater Toronto area in August 1998, and in
Montreal in January 1999. The service is currently available to 5
million households in the vast Southern Ontario market as well as
covering the Metropolitan Montreal region, thus serving the two most
densely populated centres in Ontario and Quebec. Look plans to launch in
the Quebec City and Ottawa markets in the summer.
When the amalgamation of both companies is completed, Look
Communications shareholders would own 60 per cent and current I.D.
Internet Direct shareholders would own 40 per cent of the company.
Ultimately, the amalgamated company will be controlled by Telesystem
Ltd., and will continue to comply with Canadian ownership CRTC
regulations.
A majority of shareholders of I.D. Internet Direct and Look have already
agreed to vote in favor of the amalgamation, subject to certain
conditions. The parties expect the transaction will be completed before
the end of July 1999.
I.D. Internet Direct Ltd. (VSE:IDX - news) provides a full spectrum of
Internet solutions to customers in the provinces of British Columbia,
Alberta, Manitoba, Ontario and Quebec with headquarters in Toronto. Now
the largest Canadian independent Internet service solutions provider,
I.D. Internet Direct serves over 127,000 subscribers and businesses
through 24 local access points nationally.
Look Communications is a Canadian company whose major shareholders
include Telesystem Ltd., Teleglobe Inc., CTV Inc., Covington Wireless
Communications (Ontario) Ltd., G.T.C. Transcontinental Group Ltd., Qu
\006becTel Group Inc., Bourgie Capital Inc., Novanet Communications and
the Laurem Group.
John Nemanic
President and CEO
I.D. Internet Direct Ltd.
SOURCE: I.D. Internet Direct Ltd.; Look Communications Inc. |
