Manitoba Telecom Services Inc. (TSX:MBT) says it has signed a deal to sell its Allstream business to Zayo Group Holdings Inc. for $465 million in cash.
Allstream provides Internet and other services to businesses and governments.
U.S.-listed Zayo says it wants to add Allstream's assets to its own communications infrastructure business.
After closing costs, MTS says it expects net proceeds of roughly $425 million.
The agreement to sell Allstream follows a failed deal to sell the business to Egyptian investment group Accelero Capital for $520 million.
Ottawa blocked that agreement in 2013 due to national security concerns under the Investment Canada Act.
