April 18, 2014 3:10 am
Looks like those rumours of TELUS attempting to once again acquire Mobilicity for $350 million were true.
Mobilicity is currently under court protection from its creditors and has been seeking a buyer since last September. The struggling carrier recently auctioned off its spectrum and subscriber base and according to a press release a total of “six organizations submitted participating materials and five bids were received.” Mobilicity and its Chief Restructuring Officer William Aziz declared that after looking through potential bids, TELUS’ offer was the only one “determined to be an acceptable transaction.”
The total proposed price is $350 million, which is $30 million lower than TELUS’ first offer last June. Mobilicity currently has 165,000 active subscribers and the proposal suggests customers “will be able to seamlessly migrate onto TELUS’ advanced HSPA network after the transition.” TELUS and Mobilicity note that there are “no foreseen changes to employee staffing levels” and “all of Mobilicity’s retail landlords and licensors will have their contracts honoured.” TELUS is currently going through a similar structure with the newly acquired Public Mobile brand.
“The Transaction is a good outcome from Mobilicity’s restructuring efforts and extensive Sales Process. I am confident the Transaction will serve the best interests of Mobilicity’s customers and employees,” said Aziz.
This deal just might get the green light and needs approvals by the Ontario Superior Court of Justice, the Competition Bureau, Industry Canada, and Mobilicity’s debtholders.
During the 2008 spectrum auction, Mobilicity invested $243.1-million for 10 licenses in Toronto, Vancouver, Calgary, Edmonton and Ottawa. In the meantime, Mobilicity said “it continues to be business as usual” and they “want to thank our valued customers for continuing to stand by us as we progress through this process… We have found them a good home with TELUS.”