Mobilicity approaches TELUS to enter into agreement ensuring service
continues for 250,000 customers
VANCOUVER, May 16, 2013 /CNW/ - TELUS has entered into an agreement with
Mobilicity to acquire the company for $380 million. If the deal
receives the required approvals, it would ensure continued service to
Mobilicity's 250,000 customers without the risk of disruption.
The agreement between TELUS and the company is subject to conditions
including approval by the Competition Bureau, Industry Canada, and
Mobilicity's debtholders. TELUS and Mobilicity have informed the
government and regulators and both companies are fully committed to
working cooperatively to secure timely approvals for the transaction.
"A concern for our customers and employees led us to approach TELUS,
which has a reputation for a strong customer focus, as evidenced by
their industry leading client loyalty," said Stewart Lyons, Mobilicity
President. "I am confident TELUS will look after our employees and our
customers, mitigating any disruption to their service, while offering
the best outcome for all stakeholders."
William Aziz, Mobilicity Chief Restructuring Officer, continued,
"Mobilicity has been losing a significant amount of money every month.
The financial strength of TELUS will allow the business to be continued
in a way that will benefit customers and employees. An acquisition by
TELUS is the best alternative for Mobilicity."
The entire purchase price will be used to satisfy Mobilicity's secured
and unsecured debt.
"We look forward to serving Mobilicity's customers and welcoming their
employees to the TELUS team," said David Fuller, TELUS Chief Marketing
If this transaction is approved, TELUS will retain all 150 Mobilicity
employees as it integrates the Mobilicity operation into TELUS over the
coming months. The employees would have the opportunity to review and
secure permanent, long term roles with TELUS.
TELUS has created 1,700 new jobs in Canada over the last two years alone
while bringing 4G wireless coverage to 99 per cent of Canadians
Acquisition agreement details:
Mobilicity has begun proceedings in the Ontario Superior Court of
Justice with a view to obtaining approval for a plan of arrangement
under the Canadian Business Corporations Act. The plan of arrangement
with TELUS requires an affirmative vote by debtholders, after which
TELUS and Mobilicity will seek court approval of a transaction that
will see Mobilicity emerge as a wholly-owned subsidiary of TELUS. TELUS
has entered into support agreements with a significant number of
Mobilicity's debtholders who have committed to vote for the plan of
arrangement pursuant to the terms and conditions of the support
TELUS and Mobilicity anticipate an expeditious legal and regulatory
review in view of the current circumstances Mobilicity is facing.
Caution Regarding Forward Looking Statements
This news release contains statements about expected future events of
TELUS that are forward-looking. By their nature, forward-looking
statements require the Company to make assumptions and predictions and
are subject to inherent risks and uncertainties. There can be no
assurance that the associated benefits for TELUS shareholders of the
acquisition will be realized, or that the expected regulatory and other
approvals will be obtained. There is significant risk that the
forward-looking statements will not prove to be accurate. Readers are
cautioned not to place undue reliance on forward-looking statements as
a number of factors could cause actual future events to differ
materially from that expressed in the forward-looking statements.
Except as required by law, TELUS disclaims any intention or obligation
to update or revise forward-looking statements.
TELUS (TSX: T, NYSE: TU) is a leading national telecommunications
company in Canada, with $11 billion of annual revenue and 13.2 million
customer connections, including 7.7 million wireless subscribers,
3.4 million wireline network access lines, 1.4 million Internet
subscribers and 712,000 TELUS TV customers. Led since 2000 by President
and CEO, Darren Entwistle, TELUS provides a wide range of
communications products and services, including wireless, data,
Internet protocol (IP), voice, television, entertainment and video.
In support of our philosophy to give where we live, TELUS, our team
members and retirees have contributed more than $300 million to
charitable and not-for-profit organizations and volunteered 4.8 million
hours of service to local communities since 2000. Fourteen TELUS
Community Boards lead TELUS' local philanthropic initiatives. TELUS was
honoured to be named the most outstanding philanthropic corporation
globally for 2010 by the Association of Fundraising Professionals,
becoming the first Canadian company to receive this prestigious
For more information about TELUS, please visit telus.com.
About Mobilicity (DAVE Wireless)
Formerly known as Data & Audio-Visual Enterprises Wireless Inc., the
company is operated as Mobilicity. Mobilicity is a wireless carrier
that provides wireless telecommunication services to Canadians in
Toronto, Ottawa, Calgary, Edmonton and Vancouver. Further information
about Mobilicity can be found at www.Mobilicity.ca.
SOURCE: TELUS Corporation
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