Videotron Corp Ltd, the UK subsidiary of Montreal-based Le Groupe Videotron Ltee, has raised UKP59m via leasing arrangements with Citicorp Investment Bank Ltd and Bank of Boston Ltd. The cash is to enable Videotron Corp to pursue the building and operating of its cable television and telecommunications networks in the London and Southampton areas. Groupe Videotron has agreed, subject to relevant approvals being granted, to issue no later than February 28, collateral debentures to be pledged in favour of a Canadian bank that issued letters of credit for the benefit of its British subsidiary. The collateral debentures will be convertible into subordinate voting shares of Le Groupe Videotron Ltee only to the extent of amounts required, which shall not exceed the equivalent in Canadian currency of UKP20m to satisfy the liabilities of Le Groupe Videotron to the bank in connection with the letters of credit. Le Groupe Videotron and BCE Inc hold 64% and 30% of Videotron Corp, which has 50,000 subscribers in London and offers telephone services in Southampton, which will be extended to London in February.
