BURNABY, BC, Sept. 25, 2012 /CNW/ - GLENTEL Inc. (TSX: GLN) announced
today it has entered into an agreement to acquire 83% shareholding in
AMT Group Pty Ltd (AMT Group) Australia, which operates and manages
over 210 stores nationally across Australia.
AMT Group is the leading independent multi-carrier mobile phone and
telecommunications retailer in Australia, widely recognized under the
"Allphones" brand. Allphones represents major carrier brands OPTUS,
Virgin Mobile and Vodafone. The company has a long history of providing
customers with value, choice and expertise in a multi-carrier
environment located primarily in shopping malls. As part of the
agreement, the Executive Shareholders will retain an equity stake in
AMT Group post the transaction and continue to work in their executive
AMT Group's President, Shaun Colligan, said, "We are very excited to be
partnering with GLENTEL as it provides AMT with a number of exciting
opportunities across our business. GLENTEL's investment in AMT Group
offers us access to knowledge and experience gained through its
successful business ventures in North America. This is a watershed
moment in the history of AMT Group and will position us for our next
wave of growth - to be the market leader in retail mobile
telecommunications products and solutions in the Australasian market.
"Moving forward, there will be no significant change in the way AMT
Group operates its business and its relationships with its
stakeholders: employees, franchisees/licensees, landlords, retail
channel partners and suppliers alike. The addition of a strategic
parent company such as GLENTEL will enable the business to build on our
recent success and continue our exciting growth initiatives."
"For GLENTEL, AMT Group represents a strategic value opportunity in a
new economic region to grow the international reach of our mobile phone
store network and our retail management services," said GLENTEL
President and CEO Tom Skidmore. "We are delighted to be acquiring AMT
Group, Australia and partnering with our new Executive Shareholders.
The management team is leading the Australian market with their
approach to deliver value driven solutions to customers. With more than
210 stores, the core retail brand of Allphones of over 165 stores
across Australia and the 45 Virgin Mobile stores managed by AMT Group
makes them the largest independent mobile phone retailer in Australia.
In addition, their volume buying power through the 'All Distribution'
subsidiary delivers great deals for their customers, and the telesales
business maximizes customer retention.
"We are particularly impressed with the management team, who have
developed a number of unique ways of positioning their brand. Such
examples include the 'my number' platform where customers can buy a
specific vanity number, as well as the recent agreement branding
Australia's largest indoor stadium in Sydney Olympic Park the
'Allphones Arena'. The stadium is Australia's largest concert venue and
ranked in the top 10 of the world's best performing venues capturing
national brand presence and unique call to action deals for venue
Transaction Summary - The total purchase price is AUD $70.6 million, subject to closing
adjustments. The purchase price will be funded by GLENTEL's cash,
short-term investments, and debt. Unaudited financial results for the
fiscal year ended June 30, 2012 include Sales of approximately AUD
$161.9 million and normalized earnings before interest, depreciation,
amortization and taxes of approximately AUD $18.5 million. The
transaction is expected to close in the next four to six weeks, subject
to the satisfaction of certain closing conditions.
About AMT Group
AMT Group operates and manages over 210 stores nationally in Australia
under the Allphones brand and managed services contracts with Virgin
Mobile. The company has offices in Sydney and Perth and sales offices
in Melbourne, Adelaide and Brisbane. AMT operates four business
divisions: Allphones Retail, Australian Retail Managed Services (ARMS),
All Distribution, and My Number (ecommerce business).
The first Allphones store opened in Mile End, Adelaide in 1989 and after
10 years expanded into the Western Australian market. In 2000 the
retail network comprised 12 outlets, at which time the Allphones
business was acquired by AMT Group. The first Sydney Allphones store
opened in December 2001 and Allphones has since expanded to over 165
stores across Australia.
www.amtgrp.com.au; www.allphones.com.au; www.allphonesarena.com.au
GLENTEL (TSX: GLN) is the largest independent multi-carrier mobile phone
retailer in Canada and a leading provider of innovative and reliable
telecommunications services and solutions in North America. Founded in
1963 and headquartered in Burnaby, BC, Canada, GLENTEL comprises three
operating divisions - Retail Canada, Retail U.S. and Business - that
service thousands of consumers and commercial communications customers.
The company operates over 540 corporate stores with more than 330
locations in Canada located nationally in retail malls, Costco
Wholesale stores, and business centres; and more than 210 retail
locations in the United States. GLENTEL offers a choice of network
carrier and wireless device or mobile phone to Canadian consumers and
offers the family of wireless products and services of Verizon Wireless
as one of Verizon Wireless' select six National Premium Retailers in
the United States. GLENTEL operates its business under the trading
names Glentel Wireless, WIRELESSWAVE, WAVE SANS FIL, Tbooth wireless,
la cabine T sans fil, WIRELESS etc., WAVE SANS FIL etc., Mac Station,
and Diamond Wireless - a Verizon National Premium Retailer in the U.S. www.glentel.com
Statements in this release relating to matters that are not historical
fact are forward-looking statements based on current expectations,
forecasts and assumptions that involve risks and uncertainties that
could cause actual outcomes and results to differ materially. Factors
that could cause or contribute to such differences include, but are not
limited to, general economic conditions, changes in technology,
reliance on third-party manufacturing, managing rapid growth, limited
intellectual property protection, and other risks and uncertainties
described in GLENTEL's public filings with securities regulatory
NO STOCK EXCHANGE, SECURITIES COMMISSION, OR OTHER REGULATORY AUTHORITY
HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.
For GLENTEL's annual report or for more information visit www.glentel.com or www.sedar.com.
SOURCE: Glentel Inc.
For further information:
Investor Relations Contact:
Jas Boparai, Chief Financial Officer