TORONTO – Manitoba Telecom Services Inc. (MTS Allstream) has joined with the Canada Pension Plan Investment Board (CPPIB) and The Blackstone Group L.P. to jointly submit an application to bid as a new entrant in the Advanced Wireless Services (AWS) spectrum auction, it was announced Monday.
The consortium stated it had made a $340 million deposit in letters of credit to Industry Canada. MTS Allstream, CPPIB and Blackstone will each own one-third of the new entity.
If the consortium is successful in acquiring spectrum licences, it is anticipated that Andre Tremblay, founding CEO of Microcell, will lead a team that will manage the new wireless company.
“We are moving towards the auction with exceptionally strong partners, a clear and disciplined strategy, and a focus on creating long-term value for our shareholders. By participating in this group with a minority interest, MTS is well-positioned to capitalize on this opportunity and maintain its current dividend policy,” MTS Allstream CEO Pierre Blouin said in a statement.
Goldman, Sachs & Co. and CIBC World Markets Inc. are advising MTS Allstream on the formation of the consortium. Torys LLP and Aikins, MacAulay & Thorvaldson LLP are legal advisors to MTS.
Industry Canada will release on March 14 a complete list of applicants vying to participate in the auction, which is scheduled to begin May 27. Shaw Communications has also announced its intention to participate.
