TORONTO – Mobilicity announced today that its debtholders have approved the plan for Telus to acquire the wireless carrier for $380 million.
“This is a significant step towards final approval of the plan through which the business, combined with the financial strength of Telus, can be continued in a way that will benefit our customers and employees,” said Mobilicity president and COO Stewart Lyons in a prepared statement.
In a separate release,Telus CMO David Fuller said of today’s vote: “Today’s positive vote is an important step on the road to allowing Telus to sustain service for Mobilicity’s quarter-million customers and preserve the jobs of their 150 employees without a disruption caused by their current financial challenges.”
Late yesterday, Mobilicity made revisions to the $380 million acquisition plan with Telus, just hours ahead of this morning’s vote by its debt holders. The company said the revisions referred to a working capital adjustment.
Mobilicity announced today that a vote on the recapitalization plan was postponed, and that it will only pursue an alternate recapitalization plan if the current acquisition does not proceed.
The company also announced that a hearing for approval of the acquisition plan has been scheduled for Tuesday, May 28 with the Ontario Superior Court.
The deal still needs to be approved by Industry Canada and the Competition Bureau.
