Skip to main content
telecoms

BCE chief executive officer George Cope.Ryan Remiorz

Telecom and media giant BCE Inc. says it will buy and cancel up to 2.1 million of its common shares under private deals with an arm's-length third-party seller.

The share buyback will be part of the company's plan to repurchase 6.5 million common shares over the next year, BCE said Wednesday.

The company did not say how much it paid for the shares, which are worth about $87-million at current TSX prices.

By buying back its shares, BCE reduces its equity base, spreading profits over fewer shares. That increases its return on equity and earnings per share, two key ratios used to determine a company's financial health and investment rating.

In addition, most share buybacks lead to stock price increases as there are fewer shares on the market for investors

Interact with The Globe