BCE announces renewal of Normal Course Issuer Bid for Preferred Shares

Rhea-AI Summary

BCE Inc. (BCE) has announced the renewal of its normal course issuer bid (NCIB) for purchasing up to 10% of the public float of its outstanding First Preferred Shares listed on the Toronto Stock Exchange. This NCIB will run from November 9, 2022, to November 8, 2023, unless completed earlier. BCE aims this buyback strategy to take advantage of potential undervaluation of its shares. As of November 2, 2022, BCE had not repurchased any shares under the previous bid that expires on November 8, 2022. BCE may employ an automatic securities purchase plan (ASPP) for these acquisitions.

Positive

• Renewed NCIB allows BCE to repurchase up to 10% of its outstanding Preferred Shares, potentially increasing shareholder value.
• BCE aims to purchase shares at prevailing market prices, indicating confidence in its valuation.

Negative

• No shares were repurchased under the previous NCIB, which might indicate a lack of market opportunity or liquidity.

This news release contains forward-looking statements. For a description of the related risk factors and assumptions, please see the section entitled "Caution Concerning Forward-Looking Statements" later in this news release.

MONTRÉAL, Nov. 3, 2022 /PRNewswire/ - BCE Inc. (BCE) today announced that the Toronto Stock Exchange (the "TSX") has accepted a notice filed by BCE of its intention to renew its normal course issuer bid ("NCIB") to purchase up to 10% of the public float of each series of BCE's outstanding First Preferred Shares that are listed on the TSX (the "Preferred Shares"). The period of the NCIB will extend from November 9, 2022 to November 8, 2023, or an earlier date should BCE complete its purchases under the NCIB. BCE will pay the prevailing market price at the time of acquisition for any Preferred Shares purchased plus brokerage fees payable by BCE (except with respect to purchases made under an issuer bid exemption order, which will be at a discount to the prevailing market price), and all Preferred Shares acquired by BCE under the NCIB will be cancelled.

The actual number of Preferred Shares repurchased under the NCIB and the timing of such repurchases will be at BCE's discretion and shall be subject to the limitations set out in the TSX Company Manual.

The NCIB will be conducted through a combination of discretionary transactions and purchases under an automatic securities purchase plan through the facilities of the TSX as well as alternative trading systems in Canada, if eligible, or by such other means as may be permitted by securities regulatory authorities, including pre-arranged crosses, exempt offers, private agreements under an issuer bid exemption order issued by securities regulatory authorities and block purchases of Preferred Shares. Purchases made under an issuer bid exemption order will be at a discount to the prevailing market price.

Under the NCIB, BCE is authorized to repurchase shares of each respective series of the Preferred Shares as follows:

Series	Ticker	Issued and Outstanding Shares(1)	Public Float(1)	Average Daily Trading Volume(2)	Maximum Number of Shares Subject to Purchase
					Total(3)	Daily(4)
R	BCE.PR.R	7,998,900	7,998,900	4,055	799,890	1,013
S	BCE.PR.S	2,128,267	2,128,267	1,067	212,826	1,000
T	BCE.PR.T	5,870,133	5,870,133	11,269	587,013	2,817
Y	BCE.PR.Y	8,079,291	8,079,291	6,383	807,929	1,595
Z	BCE.PR.Z	1,918,509	1,918,509	659	191,850	1,000
AA	BCE.PR.A	12,307,661	12,307,661	9,932	1,230,766	2,483
AB	BCE.PR.B	7,688,739	7,688,739	6,989	768,873	1,747
AC	BCE.PR.C	10,027,991	10,027,991	3,598	1,002,799	1,000
AD	BCE.PR.D	9,963,209	9,963,209	5,255	996,320	1,313
AE	BCE.PR.E	6,512,913	6,512,913	5,004	651,291	1,251
AF	BCE.PR.F	9,481,487	9,481,487	5,397	948,148	1,349
AG	BCE.PR.G	8,979,530	8,979,530	5,276	897,953	1,319
AH	BCE.PR.H	5,017,570	5,017,570	2,961	501,757	1,000
AI	BCE.PR.I	9,535,040	9,535,040	3,983	953,504	1,000
AJ	BCE.PR.J	4,464,960	4,464,960	3,703	446,496	1,000
AK	BCE.PR.K	23,190,312	23,190,312	15,753	2,319,031	3,938
AL	BCE.PR.L	1,799,388	1,799,388	462	179,938	1,000
AM	BCE.PR.M	10,439,978	10,439,978	7,767	1,043,997	1,941
AN	BCE.PR.N	1,054,722	1,054,722	968	105,472	1,000
AQ	BCE.PR.Q	9,200,000	9,200,000	5,946	920,000	1,486

(1)	As of November 2, 2022.
(2)	For the 6 months ended October 31, 2022.
(3)	Represents approximately 10% of the public float in respect of each series of Preferred Shares.
(4)	Represents the maximum number of shares of each series of Preferred Shares that may be purchased over the TSX (or alternative trading systems in Canada, if eligible) during the course of one trading day. This amount is equal to the greater of (i) 25% of the average daily trading volume on the TSX calculated in accordance with the rules of the TSX, and (ii) 1,000 shares. This limitation does not apply to purchases made pursuant to block purchase exemptions.

 

BCE is making this NCIB because it believes that, from time to time, the Preferred Shares may trade in price ranges that do not fully reflect their value. BCE believes that, in such circumstances, the repurchase of its Preferred Shares represents an appropriate use of its available funds.

As of November 2, 2022, under its current normal course issuer bid that commenced on November 9, 2021 and will expire on November 8, 2022, and for which the company received approval from the TSX, BCE did not purchase any Preferred Shares.

BCE will enter into an automatic securities purchase plan ("ASPP") with a designated broker in relation to the NCIB on or about the commencement date of the NCIB. The ASPP will allow for the purchase of Preferred Shares, subject to certain trading parameters, at times when BCE ordinarily would not be active in the market due to applicable regulatory restrictions or self-imposed trading black-out periods. Outside of these periods, the Preferred Shares will be repurchased by BCE at its discretion under the NCIB.

Caution Concerning Forward-Looking Statements

Certain statements made in this news release constitute forward-looking statements, including, but not limited to, statements relating to potential future purchases by BCE of its Preferred Shares pursuant to the NCIB and ASPP. All such forward-looking statements are made pursuant to the "safe harbour" provisions of applicable Canadian securities laws and of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements, by their very nature, are subject to inherent risks and uncertainties and are based on several assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially from our expectations expressed in or implied by such forward-looking statements. These statements are not guarantees of future performance or events and we caution you against relying on any of these forward-looking statements. There can be no assurance that BCE will repurchase all or any of the numbers of Preferred Shares referred to in this news release under the NCIB. In particular, the purchase by BCE of its Preferred Shares pursuant to the NCIB will depend, among other, on the prevailing market price from time to time of the Preferred Shares. The forward-looking statements contained in this news release describe our expectations at the date of this news release and, accordingly, are subject to change after such date. Except as may be required by applicable securities laws, we do not undertake any obligation to update or revise any forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise. Forward-looking statements are provided herein for the purpose of giving information about the potential future purchases of Preferred Shares by BCE pursuant to the NCIB and ASPP referred to above. Readers are cautioned that such information may not be appropriate for other purposes. For additional information on assumptions and risks underlying forward-looking statements made in this news release, please consult BCE's 2021 Annual MD&A dated March 3, 2022, BCE's 2022 First Quarter MD&A dated May 4, 2022, BCE's 2022 Second Quarter MD&A dated August 3, 2022, BCE's 2022 Third Quarter MD&A dated November 2, 2022 and BCE's news release dated November 3, 2022 announcing its financial results for the third quarter of 2022, filed by BCE with the Canadian securities regulatory authorities (available at Sedar.com) and with the U.S. Securities and Exchange Commission (available at SEC.gov). These documents are also available at BCE.ca.

About BCE

BCE is Canada's largest communications company, providing advanced Bell broadband wireless, Internet, TV, media and business communications services. To learn more, please visit Bell.ca or BCE.ca.

Through Bell for Better, we are investing to create a better today and a better tomorrow by supporting the social and economic prosperity of our communities. This includes the Bell Let's Talk initiative, which promotes Canadian mental health with national awareness and anti-stigma campaigns like Bell Let's Talk Day and significant Bell funding of community care and access, research and workplace initiatives throughout the country. To learn more, please visit Bell.ca/LetsTalk.

Media inquiries
Ellen Murphy
416-353-8774
ellen.murphy@bell.ca

Investor inquiries
Thane Fotopoulos
514-870-4619
thane.fotopoulos@bell.ca

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SOURCE Bell Canada

FAQ

What is BCE's recent announcement regarding share buybacks?

BCE has announced the renewal of its normal course issuer bid (NCIB) to repurchase up to 10% of its outstanding Preferred Shares over the next year.

What is the duration of BCE's renewed NCIB?

The renewed NCIB will be effective from November 9, 2022, to November 8, 2023.

Why is BCE conducting a normal course issuer bid?

BCE believes that its Preferred Shares may trade below their intrinsic value, making repurchases an appropriate use of funds.

Has BCE repurchased any shares under its previous NCIB?

As of November 2, 2022, BCE had not repurchased any shares under its previous NCIB that expires on November 8, 2022.

What methods will BCE use for its share repurchases?

BCE plans to conduct share repurchases through discretionary transactions, an automatic securities purchase plan, and potentially alternative trading systems.