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Mobilicity proceeds with recapitalisation after Telus abandons takeover

11 Jun 2013

Financially-struggling Canadian cellco Mobilicity has issued a statement that it will pursue its previously announced recapitalisation plan after larger operator Telus exercised an option to terminate a proposed takeover of the company. The recapitalisation plan will be voted on by Mobilicity’s debtholders on 25 June 2013. The Telus-Mobilicity deal was effectively blocked earlier this month by a decision from Industry Minister Christian Paradis, who stuck by an existing federal policy of preventing the transfer of wireless spectrum from recent market entrants to nationwide incumbent operators. As reported by CommsUpdate, the policy ruling was followed by Anthony Lacavera, the CEO of another recent mobile entrant, Wind Mobile, stating that his company – part of the Vimpelcom group – is interested in buying Mobilicity, while another rival, Public Mobile, declared its interest in consolidation involving Mobilicity and/or Wind with the goal of forming a strong competitor ahead of the 700MHz 4G licence auction set for January 2014.

Mobilicity (the trading name of Data & Audio Visual Enterprises Wireless) is owned by Obelysk, the diversified investment arm of Toronto entrepreneur John Bitove (with a majority voting stake), and Quadrangle Capital Partners of New York (which owns a majority equity stake).

Canada, Mobilicity, Telus Corp (old), Telus Corporation, Telus Mobility (old)

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