Ottawa-based SHL Systemhouse Inc is discussing a share transaction and facilities management contract with BCE Inc and its subsidiary, Bell Canada. BCE owns 25.9% of SHL after Kinburn Technology defaulted on $352m of debt, and BCE exercised its right to seize 13.5% of the Kinburn Technology subsidiary (CI No 1,415). The new arrangement would involve SHL assuming responsibility for Bell Canada’s data centre and related operations, and establishing an alliance with Bell Canada to provide systems integration and facilities management to Bell’s customer base. If the agreement goes ahead, Bell Canada will sell some assets to SHL for cash, and BCE Inc would pay in cash for new shares in SHL at $12.75 per share to take its stake to about 60% of SHL Systemhouse. SHL Systemhouse was up for grabs between May and November 1990, but by January 1991, there were no takers and SHL said that it would stay in BCE’s hands until its share price improved (CI No 1,730).
