VimpelCom is exiting the Canadian market and has agreed to sell its local operator Wind Mobile. VimpelCom and Global Telecom Holding have agreed to sell all of their debt and equity interest in Wind's holding company Globalive to the company's management and a number of investment funds for CAD 135 million. Wind CEO Anthony Lacavera already has a third of the equity and two-thirds of the voting rights in the company, through his company Globalive Capital, which is leading the takeover. Wind has around 700,000 customers.
The proceeds will go to VimpelCom in repayment of part of the debt owed the company. At the same time, GTH will be released from all of its obligations under the related shareholders agreement and certain debt obligations of Wind Canada. The transaction is expected to close shortly. Vimpelcom did not name the other buyers, but according to local media reports, they include Canadian hedge fund West Face Capital and a number of private equity firms.
Wind entered the Canadian market after acquiring spectrum in the 2008 auction. It was supported by a loan from Orascom Telecom, a company later acquired by Vimpelcom. Despite opposition from some rivals to its foreign backers, Wind secured clearance from the government to launch services. It has since struggled to gain scale on the market, while pursuing possible mergers with other new entrants such as Mobilicity.
