The Municipality of Kincardine has sold Bruce Telecom.
Toronto-based asset management firm Windsor Private Capital will be paying the municipality of Kincardine $32.6 million to acquire the company.
The decision was made at a special meeting on Thursday for Kincardine’s municipal council to approve the sale, which means that Windsor Private Capital will assume all of the shares.
Kincardine Mayor Kenneth Craig says that the company has been important to the community throughout its history.
“The value of Bruce Municipal Telephone System when it started 112 years ago, was the backbone of telecommunications within our community when no other system wanted to be involved. Local people put up their own collateral to start this corporation. It was enormously important, and there’s a huge sentimental value as well as a commercial value to Bruce Telecom.”
He says that the book value doesn’t change with the deal, but rather, the hard asset becomes a liquid asset.
“For the municipality, we’ve been very proud of Bruce Telecom. We’re very proud that they’ve been part of our community,” says Craig. “The employees of Bruce Telecom will continue to be employees of Bruce Telecom. All their positions, benefits, payments, everything like that will continue to be from Bruce Telecom.”
When Bayshore News reached out to the President and CEO of the telecommunications company, Ray Lahoud, he said in an email that “Bruce Telecom customers can expect the same high-level quality of service experienced to date because management, employment, existing services, locations, platforms, accounts, billing, and rates remain unchanged.”
Lahoud also says “We look forward to introducing the residents and customers of Kincardine, Port Elgin, Tiverton, Owen Sound, Southampton, Chesley, and the surrounding region to Windsor Private Capital, knowing they will continue to enjoy an extensive selection of services.”
It is wholly owned by Kincardine — and the municipality’s council has endorsed the sale.
Innovation, Science, and Economic Development Canada still needs to approve it — it’s expected the closing process will take at least three or four months.