Purchase of Mobilicity brings continuity of service and certainty to
over 150,000 wireless customers
Will exercise option to acquire Shaw's unused AWS-1 spectrum to meet
growing mobile video needs
TORONTO, June 24, 2015 /CNW/ - Rogers Communications will immediately
boost speed and quality for wireless customers in BC, Alberta and
Southern Ontario as part of a series of transactions announced today.
The transactions mean Rogers is completing the previously announced
acquisition of Shaw's AWS-1 spectrum and acquiring 100% ownership of
Mobilicity. The company is also divesting, post transaction, certain
AWS-1 spectrum to WIND Mobile that is contiguous to their spectrum
"We're basically adding multiple lanes on our wireless highway in three
key markets overnight," said Guy Laurence, President and CEO of Rogers
Communications. "This means faster speeds and better quality for our
customers as they use more and more mobile video."
"The transaction with Rogers provides the best possible outcome for
Mobilicity's customers, dealers and employees," said Anthony Booth,
President of Mobilicity. "Rogers ensures certainty of service for
Mobilicity customers, provides a great network, national coverage and
high quality products and services. At the same time, Mobilicity
employees will have the opportunity to work at a great Canadian company
The transactions mean Rogers gains significant, previously unused
spectrum capacity that works with all LTE devices today.
"This agreement is great news for our customers and for Canadians. We're
pleased to have worked with the government to put this unused valuable
resource to work," said Laurence. "We got the spectrum we needed where
we needed it for our customers and this keeps Rogers in the leading
competitive position across the country."
The purchase of Mobilicity is subject to approval by the Competition
Bureau and the Court. The transactions have been approved by Industry
As per the previously announced terms to complete the Shaw spectrum
acquisition, Rogers will pay $100 million in addition to the down
payments made when the agreement was originally announced in January
The transaction with Mobilicity is supported and was facilitated by The
Catalyst Capital Group Inc., on behalf of investment funds managed by
it, working closely with Rogers on the structuring of the transaction.
The $440 million purchase price is offset by tax losses valued at
approximately $175 million which Rogers will acquire. The transaction
is subject to working capital adjustments.
Following the acquisition of spectrum from Shaw and Mobilicity
respectively, Rogers and WIND will undertake an AWS-1 spectrum swap in
Southern Ontario to create contiguous spectrum for Rogers. Rogers will
also divest certain non-contiguous AWS-1 spectrum to WIND Mobile in BC,
Alberta, Saskatchewan, Manitoba and Northern Ontario and Eastern
Rogers Communications is a leading diversified public Canadian
communications and media company. We are Canada's largest provider of
wireless communications services and one of Canada's leading providers
of cable television, high-speed Internet and telephony services to
consumers and businesses. Through Rogers Media, we are engaged in radio
and television broadcasting, televised shopping, magazines and trade
publications, sports entertainment, and digital media. Our stock is
publicly traded on the Toronto Stock Exchange (TSX: RCI.A and RCI.B)
and on the New York Stock Exchange (NYSE: RCI). For further information
about the Rogers group of companies, please visit rogers.com.
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.
Caution Regarding Forward Looking Statements:
This news release contains statements about expected future events that
are forward-looking including, but not limited to, remaining required
regulatory approvals and final steps necessary to close the
transactions. By their nature, forward-looking statements require
Rogers to make assumptions and predictions and are subject to inherent
risks and uncertainties which give rise to the possibility that actual
results or events could differ materially from our expectations
expressed in or implied by such forward-looking statements. All such
forward-looking statements are made pursuant to the "safe harbour"
provisions of the applicable Canadian and United States securities
laws. 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, Rogers disclaims
any intention or obligation to update or revise forward-looking
SOURCE Rogers Communications Inc.
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