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June 24, 2015 10:54 am  #1


Mobilicity says OK to $465M takeover offer from Rogers

(Via CBC)

Canadian wireless company Mobilicity has accepted a $465-million takeover offer from larger rival Rogers Communications Inc., and will seek court approval for it.

According to court documents filed by the company monitoring Mobilicity's restructuring process, the Vaughan, Ont.-based company has agreed to be bought out by Rogers. The deal has the backing of "substantially all of [Mobilicity's] secured debt holders," according to William Aziz, chief restructuring officer.

Mobilicity has been under creditor protection since April 2013. It has a stable of about 150,000 customers clustered in Ottawa, Toronto, Calgary, Edmonton and Vancouver, and owns valuable spectrum that it purchased for $243 million in a government auction in 2008, one that gave birth to the company and many others, including Wind.

Mobilicity twice before sold itself to Telus before the federal government quashed those deals, as it would have consolidated too much wireless infrastructure in the hands of too few players.

"It is my understanding, given recent developments in the Canadian wireless industry and specifically recent auctions of spectrum, that Industry Canada no longer has the same concerns it once did about 'undue spectrum concentration' among certain wireless carriers in Canada," Aziz said.

He notes that the offer from Rogers, based in Toronto, is for far more than previous offers, and has the backing of the company's lenders, too.

"The Rogers Sale will result in greater proceeds to stakeholders than any other prior attempt to sell the business of the Mobilicity Group to date," the filing reads.

In addition to approval from the court monitoring Mobilicity's restructuring process, the deal is also subject to approval from Industry Canada and the Competition Bureau.


Madness takes its toll.  Please have exact change.
 
 

June 24, 2015 10:57 am  #2


Re: Mobilicity says OK to $465M takeover offer from Rogers

"The transaction with Rogers provides the best possible outcome for Mobilicity's customers, dealers and employees," Anthony Booth, president of Mobilicity said. "Rogers ensures certainty of service for Mobilicity customers, provides a great network, national coverage and high quality products and services. "

"At the same time, Mobilicity employees will have the opportunity to work at a great Canadian company in Rogers."

(No mention of 'for how long' on that last one though.)
 


Madness takes its toll.  Please have exact change.
 
     Thread Starter
 

June 24, 2015 10:59 am  #3


Re: Mobilicity says OK to $465M takeover offer from Rogers

better reporting and details..
(Via Globe and Mail)
Mobilicity has accepted an offer from Rogers Communications Inc. and plans to seek court approval of the $465-million sale.

The small wireless carrier, which has been under creditor protection since September, 2013, will take the agreement to court Wednesday morning, according to a court filing.

The Globe and Mail reported Tuesday evening that sources familiar with the negotiations said the company had accepted the agreement after weighing competing bids from Rogers and Telus Corp.

The filing, which was posted on the website of the monitor in its restructuring process overnight, confirms that Mobilicity accepted a bid from Rogers and is asking the court to approve the deal on Wednesday.

Bill Aziz, Mobilicity's chief restructuring officer, said in an affidavit that he understands the agreement has the support of "substantially all of [Mobilicity's] secured debt holders."

The filing said services for Mobilicity subscribers will continue uninterrupted. The carrier offers discount wireless services and has customers in Toronto, Ottawa, Calgary, Edmonton and Vancouver. 

The company's main asset is its spectrum – the airwaves used to build cellular networks – which it purchased for $243-million in 2008. The federal government must approve transfers of spectrum and has previously blocked Mobilicity's attempts to sell its licences to Telus, one of Canada's three largest wireless carriers. Telus offered $380-million in its original 2013 deal and $350-million in a deal last year.

Rogers said Industry Canada has already approved the deal in a press release Tuesday.

The deal includes the transfer of some cellular spectrum to new entrant carrier Wind, which is believed to be a factor in the federal government’s willingness to approve a transaction at this time. "Following the acquisition of spectrum from Shaw and Mobilicity respectively, Rogers and Wind will undertake an AWS-1 spectrum swap in Southern Ontario to create contiguous spectrum for Rogers," the company said in a release. "Rogers will also divest certain non-contiguous AWS-1 spectrum to WIND Mobile in BC, Alberta, Saskatchewan, Manitoba and Northern Ontario and Eastern Ontario."

As part of the deal, Rogers will also pay $100-million to complete an option to purchase unused spectrum licences from Shaw Communications Inc.

Rogers and Shaw struck a broader deal that included the option in 2013 but have to date been unable to win government approval for the spectrum transfer. According to one source, Rogers had been under pressure to get approval for that option as it is set to expire soon.

Rogers said in its release the purchase price is $440-million, but the company is also assuming $25-million in net negative working capital, leaving the total consideration for the deal at $465-million. The purchase price is offset by tax losses valued at approximately $175-million which Rogers will acquire, the company said.

More...
 


Madness takes its toll.  Please have exact change.
 
     Thread Starter
 

June 24, 2015 11:28 am  #4


Re: Mobilicity says OK to $465M takeover offer from Rogers

The reason I went with Mobilicity was to avoid "Robbers", I can't believe I'm going to have to deal with them again.  I pay $25 a month for unlimited talking, texting and data.  I can't wait to see my rates double for half the service they will provide me with.

 

June 24, 2015 12:00 pm  #5


Re: Mobilicity says OK to $465M takeover offer from Rogers

Reminds me of a group of people who went to work for another company to get away from a certain broadcast executive,  only to wake up one morning and discover that person was their new General Manager.  Come to think of it, I can think of 2 or 3 times that's happened.  You can run...etc.. etc...

Jen wrote:

The reason I went with Mobilicity was to avoid "Robbers", I can't believe I'm going to have to deal with them again.  I pay $25 a month for unlimited talking, texting and data.  I can't wait to see my rates double for half the service they will provide me with.

 


Madness takes its toll.  Please have exact change.
 
     Thread Starter
 

June 25, 2015 2:10 am  #6


Re: Mobilicity says OK to $465M takeover offer from Rogers

Jen wrote:

The reason I went with Mobilicity was to avoid "Robbers", I can't believe I'm going to have to deal with them again.  I pay $25 a month for unlimited talking, texting and data.  I can't wait to see my rates double for half the service they will provide me with.

Use Fido rates as a guide maybe?
How many people went to Microcell (Fido) thinking they could get away from Rogers?  
I'm guessing Mobilicity will not go to Rogers rates, but instead match Roger's Fido rates.

If you're REALLY lucky, you'll get Chatr rates...maybe Chatr will shut down and Mobilicity will replace it?
I don't know, but I do know this,
Shortly after Virgin Mobile teamed up with Bell, Solo vanished.





 

Last edited by Radiowiz (June 25, 2015 2:15 am)

 

June 25, 2015 2:44 pm  #7


Re: Mobilicity says OK to $465M takeover offer from Rogers

Expect to say goodbye to Chatr, which came to life (along with Bell Solo) as Wind, Mobilicity and Public Mobile were about to come on-line.  I can't imagine Rogers having 3 flanker brands. (Mobilicity, Chatr, Fido)


 

 

June 28, 2015 8:06 pm  #8


Re: Mobilicity says OK to $465M takeover offer from Rogers

Such a shame Wind didn't buy them. It really was a no brainer. Similar equipment, same sprectrum, and almost the same rate plans.
I've been with Wind for 4-1/2 years, and never been happier. I've been with Telus, Bell, and Koodo before (yes I know Telus is Koodo) I pay $45./mo. for all in talk, text, and Data. My wife's plan is $25., and she gets all the same except the data, which she wouldn't know how to use anyway. I'm about to get rid of Bell, all 3 home services, who, although I've been extraordinarily happy with the service, I can't stand the incremental price increases. They told me that my rate wouldn't change. When i called them, they said "Oh, this is just an increase" As though an increase isn't a change in the rate.
I'm getting a cell phone and porting my 416 landline # to it, and getting unlimited 30/5 internet service for $5. more than Bell's 25/10 125 GB service. There are far more inexpensive ways to get TV than payin $75. a month for Fibe as well.

Sorry. Rant off.


 I am Here, just not all there. http://cdn.boardhost.com/emoticons/devious.gif