Globalive’s deal to purchase the remaining portion of WIND Mobile Canada from foreign owner VimpelCom has been met with regulatory approval from Industry Canada.
The approximately $335 million deal ($135m in capital and around $200 million in outstanding debt) brings WIND Mobile closer to being a Canadian-owned company — several of the investors in this new deal are based in the U.S. — and will keep its head office in Ontario.
The new owner, AAL Acquisitions Corp., is comprised of a consortium of U.S. and Canadian investment companies. WIND Mobile’s former CEO, Anthony Lacavera, maintains his position as Chairman, and former COO Pietro Cordova is moving into the chief executive role.
Cordova said in a statement, “In the coming months and years WIND Mobile will continue our network and distribution rollout, and we’ll continue to improve our already market-leading value proposition.” WIND will be eager to bid on set-aside spectrum in the AWS-3 auction early next year.
Industry Minister James Moore said, “Since 2008, our Government has made clear decisions to ensure Canada’s telecommunications market is competitive so that Canadians benefit from more choice, lower prices and better service. Foreign investment transactions are reviewed on their merits and the overall economic benefit for Canada. In making my determination, I concluded that this acquisition will contribute to a more robust and competitive wireless industry in Canada.”
Source: Industry Canada