Orascom withdraws application for complete control of WIND Mobile

Ian Hardy

June 19, 2013 10:24 am

windmobile
Six months ago Tony Lacavera, WIND Mobile’s Chairman and CEO, declared that he would step down and “enter into an agreement to transfer” his share of the business to Orascom Telecom, which is owned by Netherland-based VimpelComm. This procedure was still pending all the necessary approvals, but today puts a completely new spin on its future.

In a tiny press release Orascom stated that they’ve “decided to withdraw its application for Investment Canada Act approval of its acquisition of control of WIND Mobile Canada. Orascom Telecom says this decision follows a review process and discussions with the government of Canada. Orascom Telecom says it continues to be interested in consolidating its interest in WIND Mobile Canada and in working with the government of Canada to achieve this goal.”

There’s no more specific details of what will happen, but WIND Mobile sent us this statement from Tony Lacavera: “As the founder and CEO of WIND Mobile, I have always been committed to creating a true independent wireless choice for Canadians. Despite today’s announcement, I will continue working with VimpelCom toward achieving our mutual objectives. WIND Mobile now has over 600,000 active and loyal customers, and is the clear 4th carrier in Ontario, British Columbia and Alberta. It is an exciting time in Canada’s evolving wireless landscape!”

Developing…

  • beyond

    if they take full control, does it mean they are good, or still seeking to be bought out?

  • omgwtfitsp

    does this mean they are no longer financially backed by Orascom?

    • François Villeneuve

      They probably still have that large loan to repay to Orascom.

  • Rich

    A rare case where I feel sorry for foreign investors.

  • Slappy Larue

    Am I the only one confused by all the various parties involved in the Wind saga? Would love to read a description of what will actually happen to Wind if any of these various deals comes to fruition.

  • sunvv

    Without healthy investment environment, artificial competition is not real competition.

  • deltatux

    Does this mean that WIND Mobile won’t be sold? This puts the entire sale in doubt since Vimpelcom has no controlling shares…

    • hoo dat

      No, this doesn’t mean WIND won’t be sold, it just changes the rules for an outright purchase. In fact, this news probably makes it easier for Globalive to buy.

  • Sweet

    This sounds to me like they may have found someone to buy Orascom’s share of Wind, which I believe would be a quicker process than taking over Wind and then selling it. Given the rumour that Tony was going to team up with Sawiris (who recently bought Allstream) to buy Wind from Vimpel, Allstream may be the one buying out Orascom’s share in Wind.

  • ARCE

    Hopefully with Tony as the big hitter again, Wind will complete its coverage along the 401/402/403/QEW Hwys in Ontario. That’s all i would ask for from WIND =)

  • bill

    Whatever they do, I just hope that I can keep my $40 HMP…

  • hoo dat

    I’m not so sure Verizon is the intended target here, they have a “no international expansion” clause with their parent company, Vodafone UK, meaning they’d have to buy out VF’s controlling interests or come to some sort of agreement with them. Either option will take months if not years to put into place and VimpelCom, owner of Orascom, seems to suddenly be in a hurry to off load WIND. The current situation seems to favour very heavily the potential of a Globalive/Accelero buyout which would look very attractive to the Canadian government. It may also look good to WIND’s subs too, Accelero just recently purchased Allstream from MTS and both parties have expressed an interest in buying Mobilicity.

  • PT

    “Orascom Telecom says it continues to be interested in consolidating its
    interest in WIND Mobile Canada and in working with the government of
    Canada to achieve this goal.”

    Good luck with dealing with the government of Canada … aka … Robelus. LOL!