The Globe And Mail is reporting that Rogers is about to buy struggling carrier Mobilicity:
Mobilicity has accepted an offer from Rogers Communications Inc. and plans to seek court approval of the sale, according to sources.
The small wireless carrier, which has been under creditor protection since September, 2013, plans to take the agreement to court on Wednesday morning, three sources familiar with the negotiations said.
Rogers is said to have bid more than $400-million for Mobilicity, according to two sources.
The deal is said to include the transfer of some cellular spectrum to new entrant carrier Wind Mobile Corp. This is believed to be a factor in the federal government’s willingness to approve a transaction although it has previously blocked Mobilicity’s attempts to transfer its spectrum licences to Telus Corp.
Don’t consider this a done deal yet though. Assuming this report is accurate:
- It has to be approved by the feds. Telus has had two attempts to buy Mobilicity shot out of the sky. Don’t be shocked if Rogers attempt ends up the same way.
- Telus is apparently none too happy about this. They may go to court to stop this.
So, you will have to watch this space to see how this turns out. It will be interesting to watch.
UPDATE: The Globe And Mail story that I referenced has been updated to take this out of the rumor space to being fact. Several key points have been added. The key one is that Telus apparently offered more for Mobilicity than Rogers. But Mobilicity’s creditors went with Rogers and their deal as it appeared to be the one that would pass government approval.
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This entry was posted on June 23, 2015 at 9:23 pm and is filed under Commentary with tags Mobilicity, Rogers. You can follow any responses to this entry through the RSS 2.0 feed.
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RUMOUR: Rogers To Buy Mobilicity [UPDATED]
The Globe And Mail is reporting that Rogers is about to buy struggling carrier Mobilicity:
Mobilicity has accepted an offer from Rogers Communications Inc. and plans to seek court approval of the sale, according to sources.
The small wireless carrier, which has been under creditor protection since September, 2013, plans to take the agreement to court on Wednesday morning, three sources familiar with the negotiations said.
Rogers is said to have bid more than $400-million for Mobilicity, according to two sources.
The deal is said to include the transfer of some cellular spectrum to new entrant carrier Wind Mobile Corp. This is believed to be a factor in the federal government’s willingness to approve a transaction although it has previously blocked Mobilicity’s attempts to transfer its spectrum licences to Telus Corp.
Don’t consider this a done deal yet though. Assuming this report is accurate:
So, you will have to watch this space to see how this turns out. It will be interesting to watch.
UPDATE: The Globe And Mail story that I referenced has been updated to take this out of the rumor space to being fact. Several key points have been added. The key one is that Telus apparently offered more for Mobilicity than Rogers. But Mobilicity’s creditors went with Rogers and their deal as it appeared to be the one that would pass government approval.
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This entry was posted on June 23, 2015 at 9:23 pm and is filed under Commentary with tags Mobilicity, Rogers. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.