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BCE241220C35000

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15min DelayClose Nov 22 15:59 ET
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    $BCE Inc (BCE.CA)$ $BCE Inc (BCE.US)$
    10.5% dividend rate + 2% DRP.
    2
    This study points to the BCE growth strategy in Digital Services, also demonstrated by the two following acquisitions. Dividend seeking analysts don't care for growing the base for dividend and FCF growth for the future, speaking of shortsighted. So they trashed BCE valuations.
    BCE, through its subsidiary FX Innovation, acquired HGC Technologies (HGC) in October 2024. HGC is a ServiceNow Elite partner based in Montréal, with operations in both Canada and the United States.
    Then in Nov 2024, BC...
    3
    $BCE Inc (BCE.CA)$ $BCE Inc (BCE.US)$
    "Verizon Communications Inc.'s acquisition of Frontier Communications, announced in September 2024, this deal is valued at approximately US$20 billion. The acquisition will add 2.2 million fiber subscribers to Verizon's network, extending its reach to 25 million premises across 31 states and Washington, D.C"
    Frontier is about 35% of the 25M extended reach, or 8.7M.
    Compares to BCE paying ~US$5B for 1.3 existing fibre locations and more...
    $BCE Inc (BCE.CA)$ $BCE Inc (BCE.US)$
    "Transaction enterprise value is
    approximately $7 billion Canadian, which includes Ziply Fiber's debt that will be rolled
    over and remain outstanding at closing. This equates to a multiple of 14.3 times Ziply
    Fiber's estimated 2025 adjusted EBITDA, when taking into consideration both the net
    present value of tax attributes and cost synergies. Assets like Ziply Fiber transact at
    premiums to legacy telco multiples given th...
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