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

Apply to bring home the bacon

Apply for Canada's best marketing job, Manager Bacon

Pepsi eliminating aspartame from its flagship diet pop

Decision in response to customer feedback

Holt Renfrew expanding its downtown Vancouver store

Retailer ups its game as competition heats up in the luxury goods market

How Apple defines ‘available’ (Column)

Apple Watch pre-orders delayed until June

Struggling Sears partners with ‘The Great One’ on fashion line

As competitors up their fashion game, Sears partners with a retired NHL star

Who’s ready for the Apple Watch?

A look at the Canadian brands that couldn't wait to get on consumers' wrists

General Mills selects Hunter Straker as design AOR

Account win follows the Hunter Straker-assisted launch of Old El Paso Restaurante

BMO emphasizes its human touch

Online video brings brand promise to life

Paradigm to steer communications for UK’s Ingenie

Car insurance company looking to build brand awareness in Canada