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Telus offers CAD 380 million for Mobilicity

2013-05-16 16:21:00| Telecompaper Headlines

(Telecompaper) Canadian operator Telus has agreed to acquire its smaller rival Mobilicity for CAD 380 million. The deal comes as Mobilicity, one of the new entrants on the market after the spectrum auction in 2008, struggles to turn a profit and raise new financing. In April it received a court order suspending payments while it renegotiated its debts. The takeover by Telus will require approval by its debtholders, as well as regulators. The entire purchase price would go to satisfy Mobilicity's secured and unsecured debt, while equityholders would be left with no interests. Mobilicity has around 250,000 customers, and Telus said it would ensure continuity of service for them as well as take on Mobilicity's 150 employees.

Tags: offers million cad telus

Category:Telecommunications

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