Mobilicity aiming to auction itself next month

13 Nov 2013

Indebted Canadian cellco Mobilicity is aiming to solicit interested buyers for all or part of its business by early December, according to the Financial Post, which reports that the company’s court-appointed monitor Ernst & Young is seeking a court order authorising an ownership auction process. If the process is approved, potential bidders will be given until 2 December to register interest and 9 December to submit bids. The government recently disallowed for a second time a proposed takeover of Mobilicity by Telus. Ernst & Young’s court filing on Monday concluded that ‘the best course of action at this time is to commence a formal sale process for the business and assets of [Mobilicity] … The proposed sale process is intended to maximise stakeholder value through the sale, in one or more transactions, of all or substantially all of the applicants’ business and assets,’ while noting that several potential bidders have previously conducted due diligence on Mobilicity, therefore indicating that it would be possible to set a short deadline for placing bids. Mobilicity’s court-sanctioned creditor protection expires on 20 December.

Canada, Mobilicity