HALIFAX — Canadian Press Published on Tuesday, Feb. 20, 2007 9:00AM EST Last updated on Tuesday, Mar. 31, 2009 10:06PM EDT
Bell Aliant Regional Communications Income Fund is planning a 10 per cent stock buyback, using proceeds from the sale of Aliant Directory Services, the company said Tuesday as it projected that revenue will remain steady for the year.
The buyback comes after the Halifax-based fund said Monday it would sell its 87.14-per-cent stake in the directory services company to the Yellow Pages Group.
The transaction, in which the Yellow Pages Income Fund holds the remaining stake, has a total price tag of $330-million.
CEO Stephen Wetmore said in a release the buyback “builds upon our strategy to deliver increased value to unitholders by focusing on service, value and our commitment to the communities we serve in our core businesses.”
The fund also forecast 2007 revenue of $3.33-billion to $3.4-billion. In 2006 the company posted revenues of $3.4-billion.
Bell Aliant closed out 2006 with cash reserves totalling about $139-million, with about $35-million to $45-million of that money being put towards increasing Internet speeds as well as other developments.
“We are continuing to move ahead with consolidating the regional telecom business in our territory which will help us achieve growth and provide new products and services to customers,” Mr. Wetmore said.
The buyback is subject to TSX approval.
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