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Manitoba Tel agrees to sell Allstream to Egyptian billionaire
BERTRAND MAROTTE — THE GLOBE AND MAIL
Last updated Friday, May. 24 2013, 8:48 AM EDT
File photo of workers at the MTS Centre in Winnipeg. (Phil Hossack/CP)
Manitoba Telecom Services Inc. has struck a $520-million deal to sell its Allstream division to an investment firm controlled by Egyptian billionaire Naguib Sawiris.
Allstream had been under strategic review at MTS since last fall.
Mr. Sawiris’s company, Accelero Capital Holdings, had been rumoured to be the leading bidder for Allstream.
Toronto-based Allstream has about 30,000 route kilometres of fibre network coverage across Canada, serving more than 50,000 businesses.
“This investment reflects Accelero’s long-term commitment to the Canadian telecommunications market, and our belief in the opportunity that exists to provide capital to enhance the competitive landscape in Canada,” Mr. Sawiris said in a news release Friday.