A week ago TELUS finally decided to buy Mobilicity for an amount of $380 million. Before the deal went through it required approval from the debtholders of the wireless startup. On Thursday, May 23rd debtholders of Mobilicity cast their vote and the result came in the favour of the $380 million deal. On this occasion the President and Chief Operating Officer of Mobilicity, Stewart Lyons said that, “We are pleased to have received the support of our debtholders for the TELUS Acquisition Plan. This is a significant step towards final approval of the Plan through which the business, combined with the financial strength of TELUS, can be continued in a way that will benefit our customers and employees.”
The Chief Marketing Officer of TELUS, David Fuller made the following statement after the debtholders gave green signal to the acquisition:
“TELUS welcomes today’s vote by Mobilicity’s debtholders in favour of the company’s acquisition by TELUS.
“Today’s positive vote is an important step on the road to allowing TELUS to sustain service for Mobilicity’s quarter-million customers and preserve the jobs of their 150 employees without a disruption caused by their current financial challenges,” said David Fuller, TELUS Chief Marketing Officer.
TELUS and Mobilicity announced May 16 that TELUS had agreed to acquire the company for $380 million, subject to approval from the company’s debtholders, the court, the Competition Bureau, and Industry Canada. Earlier today, Mobilicity announced its debtholders voted in favour of the transaction.
Mobilicity has begun proceedings in the Ontario Superior Court of Justice to obtain approval for a plan of arrangement under the Canadian Business Corporations Act. Now that debtholders have voted in favour of the plan, TELUS and Mobilicity will seek court approval of a transaction that will see Mobilicity emerge as a wholly-owned subsidiary of TELUS.
TELUS and Mobilicity are seeking expeditious legal and regulatory reviews due to the current financial circumstances Mobilicity is facing.”
The deal is still subject to approval from the company’s debtholders, the court, the Competition Bureau, and Industry Canada. Mobilicity has started proceedings in the Ontario Superior Court of Justice to acquire approval under the Canadian Business Corporations Act for a plan of arrangement, on top of court approval of a transaction to permit the newer wireless entrant to become a wholly-owned subsidiary of TELUS.
TELUS earlier revealed Mobilicity first approached the company for a deal last December.”
Source: iPhoneinCanada, TELUS
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