Mobilicity says Telus to acquire company for $350 million in proposed sale

Mobilicity says it has agreed to be purchased by Telus Corp. for $350 million. Mobilicity says the proposed sale is subject to approval by the Ontario Superior Court of Justice, the Competition Bureau, Industry Canada, and Mobilicity’s debtholders. Telus has twice tried to buy struggling Mobilicity, but both times the deal was rejected by Industry […]

Mobilicity says it has agreed to be purchased by Telus Corp. for $350 million.

Mobilicity says the proposed sale is subject to approval by the Ontario Superior Court of Justice, the Competition Bureau, Industry Canada, and Mobilicity’s debtholders.

Telus has twice tried to buy struggling Mobilicity, but both times the deal was rejected by Industry Canada.

“We will not approve spectrum-transfer requests that decrease competition in our wireless sector,” Jake Enwright, a spokesman for Industry Minister James Moore, said Friday.

This time, however, Mobilicity says it believes the deal will satisfy the federal agency’s criteria and will not affect competition in the Canadian wireless sector.

The company also says the “vast majority” of its 165,000 active subscribers would be able to seamlessly migrate onto Telus’ network after the transition.

Related
Telus buys Public Mobile

Mobilicity also says it there are “no foreseen changes to employee staffing levels” under the proposed transaction.

“The transaction is a good outcome from Mobilicity’s restructuring efforts and extensive sales process,” said William Aziz, Mobilicity’s chief restructuring officer.

“I am confident the transaction will serve the best interests of Mobilicity’s customers and employees.”

Mobilicity has been operating under creditor protection since September 2013.

The company has been seeking a buy and had contacted 25 organizations about submitting bids. Five bids were received by the Dec. 16, 2013 extended deadline and only the Telus bid was deemed acceptable.

Brands Articles

McCain’s new ad pushes versatility of fries – and fun

Creative showcases first major redesign for the company in more than 50 years

CMOs are being shut out when C-suites need them more than ever (Column)

Marketing has never been more important, but CMOs are often outside looking in

Following Shoppers Drug Mart’s dive into fresh

The retailer is adding fresh food to its offering. Is it just what consumers ordered?

Twist Image named digital AOR for Treasury Wine Estates

The WPP agency wins after a three-month, North America-wide review

Sport Chek goes grassroots with Toronto Raptors anthem

The retailer hits the court for the start of basketball season

O.B. tampons challenges women to ‘Give us one period’

Campaign aims to educate non-users and break down barriers to usage

Red Lion named AOR for Tbooth

Account win follows competitive review involving five unnamed shops

BC Hydro celebrates ‘Offtober’ with new campaign

This marks the Crown corporation’s first effort from Taxi Vancouver