TORONTO – Tony Lacavera found the investors he needed.
Back in June, the chairman and CEO of Wind spent considerable time in public campaigning almost like a politician, singing the growing wireless company’s praises (including at the Canadian Telecom Summit, pictured), noting if he had some finances behind him and if the federal government made a few changes, he just might be able to make a go of being a fourth national wireless company after all.
Since then, Lacavera has been pounding the pavement in search of that capital and today the company announced it has found the backers it needs to take Wind Canada off the hands of VimpelCom, which has been attempting to sell the company since the federal government mysteriously turned down the big multinational conglomerate’s attempt at taking it over in 2013. The company wrote down its $1.5 billion investment in Canada earlier this year.
Of course, with the federal government making it very clear it would not allow the sale of the company to any of Telus, Rogers or Bell, rounding up investors or seeking a sale to Videotron were two of a very few options.
Today, Globalive Capital, Lacavera’s investment company announced that it has acquired all of VimpelCom’s direct and indirect debt and equity interests in WIND Mobile. The acquisition was funded, in part, by a consortium of investors including lead investor, hedge fund West Face Capital, along with Tennenbaum Capital Partners, LG Capital Investors, Serruya Private Equity, and Novus Wireless Communications, the company officially announced early this morning.
The next stage of the transaction requires regulatory approval, which the parties are seeking immediately, says the release. It did not disclose the amount of the purchase but reports in the Globe and Mail and Wall Street Journal peg it at about $300 million.
This announcement is a positive development for Wind Mobile and Canadian consumers, including Wind Mobile’s 750,000 customers. “With stable, long-term ownership and secure financing, Wind Mobile is moving into an exciting new phase,” said Lacavera, in the release. “Wind Mobile is now poised to continue to bring true mobile freedom to Canadians for many years to come.”
“The federal government’s delivery on its promise to create the conditions for viable long-term wireless competition has not gone unnoticed by the investment community,” said Greg Boland, president and CEO of West Face Capital. “We and our partners are pleased to invest in this transaction and we are excited by the future of Wind Mobile.”
Photo by Michal Tomaszewski
