Mobilicity has reached a new agreement to be acquired by Telus for CAD 350 million. Mobilicity has been under protection from creditors since September last year. Last year it agreed a sale to Telus for CAD 380 million, but the deal was blocked by the Canadian government, which said it would not allow one of the new entrants on the mobile market after the spectrum auction in 2008 to be swallowed up by a larger incumbent.
After the five-year moratorium on spectrum sales expired, Mobilicity said it expects the new transaction to gain regulatory approval, as it should not impact competition. The sale to Telus is expected to provide continuity of service for its 165,000 customers as well as its staff and suppliers.
The company said it attracted five bidders in its sale process, with only Telus' offer deemed acceptable. Approximately 95 percent of the holders of Mobilicity's senior unsecured debt due 2018 support the transaction and have agreed to vote in favour of the plan. Completion also remains subject to court approval.
