TORONTO, June 24, 2015 /CNW/ - Data & Audio-Visual Enterprises Holdings Inc. and its affiliates (collectively, Mobilicity) today announced that the Sale Approval Motion, in regard to a proposed sale transaction between Mobilicity and Rogers Communications (the "Rogers Sale"), was approved by Mr. Justice Frank Newbould of the Ontario Superior Court of Justice (Commercial List). The Rogers Sale, whereby Rogers Communications will purchase Mobilicity for a purchase price of $465 million, subject to certain adjustments, is the best available way to realize value for Mobilicity's stakeholders.
"I'm pleased that, following a robust sale and bidding process, we were able to agree on a purchase price to complete a going-concern sale that addresses the needs of a number of stakeholders," said William Aziz, Chief Restructuring Officer. "I thank subscribers, employees, dealers, suppliers and creditors for their continued support of Mobilicity throughout the restructuring process."
Pursuant to the Rogers Sale, Mobilicity's trade liabilities will continue to be dealt with in the ordinary course, all employees, dealers and other obligations will be assumed by Rogers Communications and services for subscribers will continue uninterrupted. The transaction is subject to approval by Industry Canada and the Competition Bureau. Mobilicity intends to seek a vesting and distribution order on Monday, June 29, 2015.
The purchase price will be applied to repay all of the outstanding first and second lien debt of Mobilicity, with the remainder being used to repay certain remaining unsecured creditors on a pro rata basis. For more information regarding the Rogers Sale, please see the press release issued by Rogers Communications earlier today and associated court materials that will be available at the Monitor's website at www.ey.com/ca/mobilicity.
About Mobilicity (DAVE Wireless):
Mobilicity, Canada's smart mobile carrier, was created to bring down the cost of wireless with unlimited talk, text and data plans, affordable North American coverage, plus popular handsets and smartphones – without locking customers into contracts or charging extra or hidden fees. Further information about Mobilicity can be found at www.mobilicity.ca.
For further information: For more information related to Mobilicity, please contact: Joel Shaffer, Longview Communications Inc., 416-649-8006; Nick Anstett, Longview Communications Inc., 416-649-8008