Telus to Have Another Go at Purchasing Mobilicity.

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Telus to Have Another Go at Purchasing Mobilicity.

Data & Audio- Visual Enterprise Holding Inc. and its affiliates, has recently announced a proposal that concerns the transaction with Telus Corporation, which would acquire Mobilicity for a total for a total of $350 million. This proposed transaction, will be implemented pursuant to a plan of compromise or arrangement under the Companies Creditors Arrangement Act.

Transaction.

Mobilicity has continued to operate under the CCAA since the past September in 2013, with the completion of a transaction as key initiative. The sales process has been supervised by the Court appoints Monitor. Who support and recommend the 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.”

This transaction will provide for complete continuation of Mobilicity business that shall benefit its stakeholders:

  • the vast majority of Mobilicity’s one hundred and sixty five thousand active subscribers will be able to seamlessly migrate onto TELUS’ advanced HSPA network after the transition.
  • no foreseen changes to employee staffing levels as a result of the proposed transaction;
  • all of Mobilicity’s retail landlords and licensors will have their contracts honoured;
  • all of Mobilicity’s landlords and licensors who provide space for placement of Mobilicity’s dealers and their employees who sell Mobilicity’s products will continue to benefit from those arrangements;
  • all service agreements with Mobilicity’s business partners will continue uninterrupted; and
  • the trade claims of Mobilicity’s creditors will continue unaffected against the restructured Mobilicity and will be addressed in the ordinary course.

All in Favor.

Over the several past months, Mobilicity, with some help from its financial advisers and the independent, Court-appointed Monitor, conducted an exhaustive process that allowed it to explore all potential sales and other transactions for the company. The Sales Process was a widely advertised, competitive process that shall provide a fair and equal opportunity for all parties interesting in bidding for a part of Mobilicity’s assets. A total of over 25 organizations were contacted about submitting bids as part of the Mobilicity Sales Process.

 Out of the 25, six organizations submitted participating materials and five bids were received by the December 16, 2013 extended bid deadline. Out of the five bids, only the transaction with Telus was determined to be an acceptable transaction. A total amount of 95% of the holders for Mobilicity’s 15% senior unsecured debentures due 2018 also support the transaction and have agreed to vote  in favour of the plan.

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