OTTAWA and TORONTO – It’s full speed ahead for Wind Mobile after Industry Canada officially approved a plan allowing Globalive Capital to buy back majority control of the Canadian wireless company from VimpelCom.
“Foreign investment transactions are reviewed on their merits and the overall economic benefit for Canada”, said Industry Minister James Moore, in a statement. “In making my determination, I concluded that this acquisition will contribute to a more robust and competitive wireless industry in Canada.”
Industry Canada also approved the transfer of the company’s spectrum licences.
Wind Mobile chairman Anthony Lacavera announced in September that his investment company, with the help of several other financial backers, was seeking to buy back all of VimpelCom’s direct and indirect debt and equity interests in Wind Mobile.
As conditions of its approval, Industry Canada said that Wind Mobile's head office must remain in Canada; the majority of its head office employees are Canadian; the company remain incorporated under Canadian federal or provincial laws; that it provide Canadian-based suppliers with "a fair and equitable opportunity" to compete for Wind Mobile's business; and, that it “significantly invest capital with the aim of purchasing spectrum and growing Wind Mobile's business across Canada”.
The wireless upstart said that it was “pleased” that its new financing arrangement has received all required regulatory approvals, a move that it says serves to “reinforce the federal government’s commitment to wireless competition in Canada, and signal Wind Mobile's stable ownership.”
“Wind Mobile is the established alternative to the Big Three mobile service providers in Ontario, British Columbia and Alberta,” said Lacavera, in a statement. “This approval of our recently announced financing is great news for Canadian consumers. It puts Wind Mobile on solid footing to continue bringing Canadians a true, competitive choice in wireless.”
