BCE announces a partnership with La Caisse, with the latter acquiring a 49.9% stake in Bell Wireless Tower Infrastructure Company

This press release contains forward-looking statements. For information regarding relevant risk factors and assumptions, please refer to the section titled "Forward-Looking Statements" at the end of this press release.

Montreal, October 27th / CNW / -- One of Canada's largest telecommunications companies, BCE Inc ( NYSE : BCE ; TSX : BCE ), announced today that its wholly-owned subsidiary Bell Canada (" Bell ") has signed a final agreement with the global investment group La Caisse. La Caisse will acquire a 49.9% stake in a newly established wireless tower infrastructure company for C$2.45 billion, with the amount subject to adjustment according to customary terms. The transaction values the tower company at approximately C$4.91 billion and unlocks significant value within BCE's infrastructure.

Bell's partial monetization of passive wireless infrastructure assets is in line with the long-term capital allocation strategy proposed by BCE on Investor Day in 2025, which includes a commitment to reduce the net debt leverage ratio to 3.5 times by the end of 2027, as well as the flexibility to fund key growth areas, including AI's drive solutions.

The newly established wireless tower infrastructure company “TowerCo” will acquire and operate the wireless infrastructure asset portfolio of “Bell”, making it the largest specialized tower company in Canada with over 5,000 sites nationwide. Headquartered in Montreal, the company will focus on expanding its business through the construction of new sites, site encryption, and third-party co-locating.

According to the terms of the agreement, TowerCo will lease the transferred tower capacity to Bell. Bell will retain a 50.1% controlling stake in TowerCo, while La Caisse will hold the remaining 49.9%. It is anticipated that TowerCo will have no financial debts at the time of delivery, and its financial results will be incorporated into the financial statements of Bell.

Bell will retain full ownership and control over its spectrum, all active network equipment, and its own land. Bell will continue to use the existing sites through long-term agreements, and TowerCo will also develop new sites for Bell as needed to ensure the continuous provision of high-quality, reliable wireless services to Canadian users.

The transaction is expected to be completed in the first quarter of 2027, after obtaining regulatory approval and meeting other customary delivery conditions.

Quotation

"This collaboration, while allowing us to continue operating the award-winning wireless networks that our customers rely on every day, also unlocks the tremendous value inherent in our infrastructure assets. As we have been communicating since early 2025, our approach is to strengthen our balance sheet, invest in growth, and bring total returns to our shareholders. This transaction is in line with this strategy, and the proceeds will be used to implement this very clear plan."

—— President and CEO of BCE and Bell Canada, Mirko Bibic

A single telecommunications tower can support more than one network. By allowing different service providers to use this infrastructure, we can enhance coverage and improve the overall system efficiency, thereby helping more people access the connectivity services they rely on every day. Bell's extensive business layout, combined with La Caisse's professional experience in global digital infrastructure, will provide a focused and long-term perspective for this new platform to drive growth.

– La Caisse Vice President and Head of Infrastructure and Sustainable Development Emmanuel Jaclot

"At TowerCo, we are building a dedicated team focused on the development, operation, and long-term growth of high-quality wireless tower infrastructure in Canada. By collaborating with La Caisse under a clear mission, we aim to expand this portfolio of infrastructure assets and support future network deployments, providing Canadians with the most important connectivity services."

—— CEO J. Bruce Furlong

About BCE

BCE is one of the largest telecommunications companies in Canada, leading in advanced fiber optics and wireless networks, enterprise services, and digital media. By providing next-generation technologies that utilize cloud and AI-driven solutions, we help our customers stay connected, access information and entertainment, and at the same time assist businesses in competing on a global stage. For more information, please visit Bell.ca or BCE.ca.

About La Caisse4

Over the past 60-plus years, La Caisse has been investing with a dual mission: to achieve the best long-term returns for its 48 deposit-taking institutions, which represent over 6 million Quebec residents, and to contribute to the economic development of Quebec.

As a global investment group, La Caisse is active in major financial markets, private equity, infrastructure, real estate, and private credit sectors. As of June 30, 2026, its net assets amounted to 552 billion Canadian dollars. For more information, please visit LaCaisse.com, LinkedIn, or Instagram.

Media inquiries:

• Bell Canada : [ email protected ]
• La Caisse : [ email protected ]

Investors inquiring:

• Kris Somers : [ email protected ]

Forward-looking Statements Caution

Certain statements in this press release are forward-looking statements, including those regarding the proposed transaction, the benefits and opportunities expected to arise from the proposed transaction, where Bell intends to use the proceeds from the proposed transaction, the relationship between Bell and TowerCo and their control over each other, the net debt leverage ratio target that BCE expects to achieve by the end of 2027, the completion of the proposed transaction in accordance with the terms stated in this press release and the anticipated time of completion, Bell's expectation that TowerCo will have no financial debts at the time of delivery, and other statements that are not historical facts. All such forward-looking statements are made under the applicable Canadian securities laws and the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to inherent risks and uncertainties and are based on certain assumptions; therefore, actual results or events may differ significantly from our expectations. These statements do not guarantee future performance or events, and we caution you not to rely excessively on any such forward-looking statements. The forward-looking statements in this press release reflect Bell's expectations as of the date of issuance of this press release and may change thereafter. Except as required by applicable securities laws, Bell has no obligation to update or revise any forward-looking statements in this press release, whether due to new information, future events, or other reasons. The timing and completion of the proposed transaction depend on customary closing conditions, termination rights, and other risks and uncertainties, including but not limited to relevant regulatory approvals, which may affect the completion, terms, or timing of the transaction. Therefore, there is no guarantee that the proposed transaction will occur, or will occur under the terms and conditions envisioned in this press release, or within the stated timeline. The proposed transaction may be modified, restructured, or terminated. Nor is there any guarantee that the potential benefits expected from the proposed transaction will be realized.For more information regarding the assumptions and risks on which certain forward-looking statements in this press release are based, please refer to the 2025 annual report submitted by BCE on March 5, 2026; the MD for the first and second quarters of 2026 submitted by BCE on May 6, 2026, and August 5, 2026, respectively; as well as the press release on financial results for the second quarter of 2026 issued by BCE on August 6, 2026. These documents have been submitted to the Canadian provincial securities regulatory authorities (available at sedarplus.ca) and the U.S. Securities and Exchange Commission (available at SEC.gov). They are also available for review at BCE.ca.

Non-GAAP and other financial indicators

BCE uses a variety of financial indicators to assess its business performance. Some of these indicators are calculated in accordance with IFRS accounting standards or GAAP, while others do not have a standardized meaning under GAAP. We believe that by combining GAAP financial indicators with adjusted non-GAAP and other financial indicators, readers can better understand how management evaluates the BCE's performance. Canadian National Regulation 52-112, "Disclosures of Non-GAAP and Other Financial Indicators" (NI 52-112), specifies disclosure requirements for the following designated financial indicators: (i) non-GAAP financial indicators; (ii) non-GAAP ratios; (iii) segment summary indicators; (iv) capital management indicators; and (v) supplementary financial indicators. This section provides an explanation and classification of the designated financial indicators used in this press release that are covered by NI 52-112. However, for supplementary financial indicators, if their labels are not sufficient to provide a clear explanation, an explanation will be provided when the indicator is first mentioned.

The net debt leverage ratio is a capital management indicator that represents net debt divided by adjusted EBITDA. The net debt used to calculate this ratio is a non-GAAP financial metric. Net debt is not a standardized financial indicator under IFRS accounting standards, which means it may not be comparable to similar indicators provided by other issuers. For more information on this indicator, including a comparison with the most directly comparable financial indicator under IFRS accounting standards, which is long-term debt, please refer to Section 11.1 "Non-GAAP Financial Indicators – Net Debt" of BCE's annual report for 2025, submitted on March 5, 2026. This content is incorporated into this text through citation. To calculate the net debt leverage ratio, we use the adjusted EBITDA from the past 12 months. We, as well as some investors and analysts, consider the net debt leverage ratio to be an indicator of financial leverage.