BURNABY, BC, Nov. 1, 2012 /CNW/ - GLENTEL Inc. (TSX: GLN), the largest independent multi-carrier phone retailer in Canada, announced today that it has completed the 83% share purchase of Sydney, Australia-based AMT Group Pty Ltd (AMT Group), which operates under the Allphones retail brand.
"I would like to welcome the AMT Group's shareholders, employees, Allphones' franchisees and licensees to the GLENTEL family," stated Tom Skidmore, GLENTEL's President and Chief Executive Officer. "With the successful acquisition of the AMT Group, GLENTEL now operates in three distinct world markets and on two continents, with over 750 retail locations worldwide."
AMT Group is the leading independent multi-carrier mobile phone and telecommunications retailer in Australia, operating and managing over 210 stores, with annual sales of approximately AUD$162 million and over 400 corporate employees. As part of the agreement, the Executive Shareholders have retained a 17% equity stake in AMT Group and continue to work in their executive leadership roles.
The total purchase price for 83% of AMT Group was AUD$66.1 million (CDN$67.7 million) of cash considerations and the assumption of an operating facility that was drawn down by AUD$4.4 million (CDN$4.5 million) at the time of completion, for an enterprise value of AUD$70.5 million (CDN$72.2 million). GLENTEL funded the acquisition through CDN$17.7 million of cash and a CDN$50.0 million syndicated senior credit facility. The final purchase price is subject to a final working capital adjustment.
The company secured a new CDN$68.5 million 5-year syndicated senior credit facility, of which CDN$50.0 million was used for the transaction and CDN$18.5 million was used for general working capital and operating purposes. The company refinanced the CDN$22.8 million remaining on the 3-year fixed-term acquisition loan used for the Diamond Wireless acquisition into a 5-year syndicated senior credit facility and increased its operating facility from CDN$10.0 million to CDN$15.0 million.
Unaudited AMT Group financial overview follows.
|AMT Group||12-months ended|
|(in millions of Australian Dollars)||June 30, 2012|
| Income before amortization, finance income and expenses,
non-recurring items, and taxes
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 four operating divisions - Retail Canada, Retail U.S., Retail Australia and Business - that service thousands of consumers and commercial communications customers. The company operates over 750 stores with more than 330 locations in Canada located nationally in retail malls, Costco Wholesale stores, and business centres; more than 210 retail locations in the United States; and more than 210 retail locations in Australia. GLENTEL offers a choice of network carrier and wireless device or mobile phone to Canadian and Australian 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, Diamond Wireless - a Verizon National Premium Retailer in the U.S., and Allphones.
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 authorities.
NO STOCK EXCHANGE, SECURITIES COMMISSION, OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.
SOURCE: Glentel Inc.
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