Telus, Rogers Bidding to Purchase Mobilicity

After fighting off takeover rumours for the better part of two years, The Globe and Mail reports that Rogers and Telus have quietly submitted proposal transactions to the government for review in a bid to purchase struggling telco Mobilicity.

mobilicity_logoHowever, a source also tells the Globe and Mail that if a deal cannot be reached in the next few weeks, the federal government may decide to delay the sale until after the election – when values and bidders may have shifted considerably.

Mobilicity has been under creditor protection since September 2013 and has been looking for a buyer. Telus has tried numerous times to purchase the carrier, but all attempts up until now have been blocked by the federal government, who weren’t keen on seeing Mobilicity’s share of the wireless spectrum go to one of Canada’s Big Three telcos.

What makes this time so different? Well, apparently Telus is offering to transfer some of Mobilicity’s wireless spectrum to Wind Mobile, a move that has caused the government to reconsider.

Telus spokesman Shawn Hall confirmed on Friday the company’s interest in a potential purchase and said they had put forward a proposal which included a provision for transferring a portion of spectrum to Wind or another smaller player in Canadian market.

Details of Rogers’ offer are not as clear, though a source says a similar provision of wireless spectrum to Wind would also be included in a successful deal.

Representatives for Rogers and Wind have so far declined to comment.

 

[Source: The Globe and Mail]

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