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 leadership roles.
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 guests."
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.
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 authorities.
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SOURCE: Glentel Inc.
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