On July 21, 2000, GT Group Telecom Inc. purchased the assets used by Cable Atlantic Inc. in its competitive local exchange and business telecommunications operations for aggregate consideration of approximately $57 million, comprised of $15 million (subject to a working capital adjustment) and 1,740,196 Class B Non-Voting shares in the capital of GT Group Telecom Inc.
The GT Group Telecom Inc. shares are to be issued to Cable Atlantic Inc. following the issuance of receipts for the prospectus filed by GT Group Telecom Inc. for the purpose of qualifying their distribution. In connection with the transaction, Cable Atlantic Inc. granted GT Group Telecom Inc. an indefeasible right of use in approximately 390 route kilometres of optical fibre in St. John’s, Newfoundland.
Alexandra Hoy, Bob Glass, David Thring, Craig Manuel, François Potvin and Stephan Luciw of Lang Michener (Toronto) and Dave McKay and Brad Wicks of Williams, Roebothan, McKay & Marshall (St. John’s) represented Cable Atlantic. GT Group Telecom Inc. was represented by their Senior Vice President, General Counsel, Robert Fabes and Michael Campbell, Associate Counsel, together with Francesca Guolo, Michael Koch and Beau Zahrai of Goodman Phillips & Vineberg (Toronto) and Bruce Grant of Stewart McKelvey Stirling Scales (St. John’s).