Mobilicity says TELUS has officially terminated acquisition plans

Canada’s Industry Minister Christian Paradis denied TELUS’ $380 million bid to acquire Mobilicity last week, plus also declared that the upcoming 700 Mhz auction would be delayed until January 2014.

Upon hearing the news, which at one-time TELUS said “will benefit our customers and employees,” the carrier noted that the “decision is unfortunate for Mobilicity’s 250,000 customers, 150 employees and debtholders, who now face considerable uncertainty due to the pressing financial challenges facing the company. TELUS will drive on with our proven strategy that has served us so successfully over the years.”

TELUS officially decided to drop the hammer today and let Mobilicity’s “considerable uncertainty” come a bit sooner than later. In a press release “Data & Audio-Visual Enterprises Holdings Inc. and its affiliates (collectively, Mobilicity) today announced that TELUS has exercised its option to terminate the TELUS Acquisition Plan. Mobilicity also announced that it will now pursue its previously announced recapitalization plan, which will be voted on by debtholders at a meeting on June 25, 2013.”

WIND Mobile and possibly Public Mobile have expressed interest in merging with Mobilicity, however previous reports have indicated that Mobilicity is currently $450 million in debt and losing an incredible $30 million every month.

Source: CNW

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