Friday, November 28th4.4°C
24124
23988

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

TORONTO - Mobilicity says it has agreed to be purchased by Telus Corp. (TSX:T) 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.

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.

The Canadian Press


Read more Business News

23457


Recent Trending




Today's Market
S&P TSX14835.16-87.28
S&P CDNX746.38-9.02
DJIA17877.5349.78
Nasdaq4809.924+22.607
S&P 5002073.30+0.47
CDN Dollar0.8749-0.0068
Gold1181.50-15.10
Oil69.30-4.39
Lumber327.30-0.70
Natural Gas4.295+0.144

 
Okanagan Companies
Pacific Safety0.15-0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.30-0.04
Cantex0.04-0.005
Anavex Life Sciences0.20+0.029
Metalex Ventures0.04+0.005
Russel Metals30.12-0.58
Copper Mountain Mining2.00-0.12
Colorado Resources0.13+0.01
ReliaBrand Inc0.0134-0.0001
Sunrise Resources Ltd0.045-0.005
Mission Ready Services0.30-0.02

 
24130


23630

FEATURED Property
20397691174 Long Ridge Drive
4 bedrooms 4 baths
$672,500
more details
image2image2image2
Click here to feature your property
Please wait... loading


Don't stop dreaming!

On Wednesday evening I drove through the Bow Valley in Alberta. It is my old home town... the first place Jackie and I moved to in 1988 when we emigrated. We ended up setting up home there and living...


Second marriage issues

It is not unusual that one or both of the parties planning to marry are approaching marriage for the second time. There are pluses and minuses to this new situation. On the plus side, individuals ente...


The last great Canadian tax shelter

A guide to how flow-through fund limited partnerships can mightily aid your tax planning!The end of the year will raise concerns among many professionals, self-employed persons, business owners and ev...

_



24207

24185


Member of BC Press Council


22842