Mobilicity adjourns recapitalisation vote; takeover talks continue with multiple suitors

11 Jul 2013

In a press release yesterday, financially struggling Canadian cellco Mobilicity announced that it has adjourned a debtholder vote on a recapitalisation plan (scheduled for yesterday) while it pursues an alternative plan to negotiate an acquisition of the company. Mobilicity (the trading name of Data & Audio-Visual Enterprises Holdings and affiliates) noted that ‘consistent with the pursuit of all of its strategic alternatives, the company has the right to reconvene the recapitalisation plan vote on notice to its debtholders,’ and added that it is ‘in discussions with multiple parties in connection with an acquisition plan of arrangement.’ Stewart Lyons, Mobilicity’s president, said, ‘We are working diligently to reach an acquisition agreement and thank our customers, dealers, employees and partners for their continued support as we see this process through to its completion.’ A recent attempt by Mobilicity to sell itself to larger Candian rival Telus was blocked by federal policy aimed at preventing spectrum licence transfers from recent entrants to large national players, while US giant Verizon is reportedly one of the potential buyers in ownership talks with Mobilicity. Verizon is also reported to have tabled a preliminary bid for another Canadian second-tier cellco Wind Mobile, which itself has claimed it may attempt a takeover of Mobilicity, while another of its cellular peers Public Mobile has indicated it would like to merge with Wind and/or Mobilicity to create a strong competitor ahead of 4G 700MHz licence auctions in January 2014.

Canada, Freedom Mobile, Mobilicity, Public Mobile, Verizon Communications, Verizon Wireless