Bell to Sell Northwestel to Sixty North Unity for $1 Billion

Sixty North Unity, a consortium of Indigenous communities from the Yukon, Northwest Territories, and Nunavut, has announced plans to acquire Northwestel from Bell.

Northwestel is the leading telecom in the North, and once the sale goes through, the latter will become the largest telecom company globally with full Indigenous ownership.

“As Indigenous people, we have long believed we are best placed to make the necessary decisions affecting services in our communities. The acquisition of Northwestel will give us the autonomy to make those investments and choices to serve our telecommunications needs into the future,” said Tiffany Eckert-Maret of Sixty North Unity (Yukon), in a statement.

Sixty North Unity says it is planning the follow investments in the North:

• Doubling internet speeds to 1 Gbps for fiber customers.
• Expanding high-speed internet to meet the CRTC’s universal service objective of 50/10 Mbps for over 97% of homes in Yukon and the Northwest Territories.
• Deploying Low Earth Orbit (LEO) satellite technology to deliver 50/10 Mbps speeds to eight satellite-served communities in the Northwest Territories and 25 in Nunavut.
• Investing $4 million in the Great Slave Lake Fibre Project to enhance resiliency in Yellowknife and the South Slave regions.

Northwestel’s existing management team will remain, led by President Curtis Shaw. Corporate headquarters will remain in Whitehorse, with operational headquarters in Yellowknife and a regional office in Iqaluit.

Bell says it will keep its strategic partnership with Northwestel, offering ongoing operational support and remaining its largest customer.

The purchase price for the transaction is up to $1 billion in cash, subject to adjustments. TD Securities is advising Sixty North Unity, while RBC Capital Markets is advising Bell. Bell says it will use the funds to pay down debt.

“This historic transaction embodies Bell’s ongoing commitment to walking the path of reconciliation to build a more inclusive, connected Canada. I congratulate Sixty North Unity and Northwestel on this visionary partnership to advance economic reconciliation through Indigenous ownership of critical telecommunications infrastructure in their communities,” added Mirko Bibic, President and CEO of BCE Inc. and Bell Canada, in a statement.