Halton Hills Authorizes the Sale of Halton Hills Fibre Optics Inc. and Hummingbird Wireless to Atria Networks for $4,750,000

The Council for the Town of Halton Hills has authorized Halton Hills Community Energy Corporation (“HHCEC”) to negotiate the sale of Halton Hills Fibre Optics Inc. (“HHFOI”), including its wireless division, Hummingbird Wireless, to Atria Networks LP (“Atria”) for $4,750,000. Should the negotiations be successful and the sale completed then the Town, through HHCEC, will realize a “net profit” of approximately $1,400,000 as a result of the transaction after the outstanding debts owed to Halton Hills Hydro and HHCEC are paid, transaction closing costs are covered, and any Federal and Provincial taxes paid. The approximate $1,400,000 net will be used by HHCEC as the working capital for its core energy business and for the ongoing payment of an annual dividend to the Town.

During the recent restructuring of the Hydro group of companies, it was determined that to stay in the telecom business in the future would require considerable additional investment and more resources. This is due to the stiff and growing competition, corporate consolidations and ever-advancing technology in the telecom field.

Therefore Town Council determined that if a suitable buyer and purchase price could be found, it would be better for HHCEC to sell HHFOI and Hummingbird Wireless to concentrate on the core energy business.

A number of telecom companies were canvassed for their interest. The Atria Proposal was selected due to the attractive valuation it offered, its experience in the telecom sector and its demonstrated commitment to local communities.

“The strategic focus of HHCEC moving forward should be building the core business of electricity distribution and exploring community energy opportunities” said Rick Bonnette, Chairman of HHCEC. “The sale of HHFOI and Hummingbird Wireless at a significant profit would validate the investment the Town has made in Halton Hills’ broadband infrastructure. As well, should the sale be concluded, then it will also be a win for the customers as they will be able to get high quality telecommunication services from Atria, an experienced and respected investor in the telecom sector, that is committed to operating and growing the business.

Indeed, the Town has been assured by Atria that they will maintain the current fibre and wireless network with service levels matching or exceeding thosepresently provided by HHFOI”.

HHFOI is a specialized telecommunications carrier that provides broadband facilities and internet access to the residents of Halton Hills and the surrounding area. The sale to Atria, if completed, will position HHFOI as part of a larger dynamic organization with the capacity to grow the business to realize its maximum potential.

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