July 10, 2013 8:14 am
Mobilicity, legally known as Data & Audio-Visual Enterprises Holdings Inc., has announced today that they’ve officially ‘adjourned the debtholder vote on the previously announced recapitalization plan.” The startup wireless company has been searching for a buyer for many months and also declared they are currently “in discussions with multiple parties in connection with an acquisition plan of arrangement.”
TELUS was previously interested in acquiring Mobilicity for $380 million, including their 250,000 wireless subscribers, 150 employees and valuable spectrum. However, the Industry Minister Christian Paradis declined the deal and stated “Our government has been clear that spectrum set aside for new entrants was not intended to be transferred to incumbents. We will not waive this condition of licence and will not approve this, or any other, transfer of set-aside spectrum to an incumbent ahead of the five-year limit.”
Rival carrier WIND Mobile recently expressed interest in merging their businesses. Tony Lacavera, WIND Mobile’s Chairman and CEO, said after the failed TELUS acquisition that there’s a “renewed opportunity for discussion” to purchase Mobilicity. In addition, US-based Verizon is rumoured to come north and has been in discussions with both WIND Mobile and Mobilicity.
Stewart Lyons, Mobilicity’s President and COO 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.”