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

Sport Chek floods Toronto with 1,891 free basketballs

The stunt served as the kick-off to the retailer's new basketball-themed campaign

BMO’s “Ball-Star” hits the court for All-Star Weekend

Bank's marketing also includes a 10-foot tall ATM

OMD tops Gunn Report for 10th straight year

Report lists Canadian office's 'Smart City Project' among the network's best work

Edo Japan re-signs with Brookline Public Relations

Calgary-based PR shop appointed AOR for sixth consecutive year

Adidas kicks off All-Star Weekend with a pop-up shop

The global sportswear brand has opened a Toronto sneaker boutique

Veritas opens in Vancouver

The move will help the PR shop better serve its new B.C.-based client, Best Buy

New York Fries puckers up on Snapchat for Valentine’s

The brand is asking consumers to "French" their fries on Snapchat

How grocers are aiming to connect with ethnic consumers

Loblaw, Sobeys have opened ethnic format stores. But are they authentic enough?

DavidsTea introduces product line to benefit Kenya (Video)

Co-founder David Segal talks about the brand's approach to CSR