Mobilicity shareholders were supposed to be voting today on a recapitalization plan for the beleaguered carrier. Instead, the company has postponed the vote indefinitely as acquisition discussions continue. The move comes after it had already delayed the vote. The company explained today that it was holding talks with “multiple parties in connection with an acquisition plan of arrangement.”
Stewart Lyons, Mobilicity’s President and COO said, “We are working diligently to reach an acquisition agreement and thank our customers, dealers, employees and partners for their continued support as we see this process through to its completion.”
While Mobilicity did not name the companies with which it is discussing its acquisition, one of them is likely to be Verizon Wireless. The US-based carrier reportedly made an initial offer to buy out WIND Mobile for US$700 million and was also holding talks with Mobilicity.
WIND Mobile itself could be another party talking to Mobilicity. Back in June, CEO Tony Lacavera told Reuters that “Our past offers for Mobilicity stand and we look forward to having ongoing discussions with them.” Maybe Mobilicity did reach out.
Mobilicity has 150 employees and about 250,000 subscribers.
Mobilicity adjourns debtholder vote on recapitalization plan, pursues acquisition plan of arrangement
TORONTO, July 10, 2013 /CNW/ – Data & Audio-Visual Enterprises Holdings Inc. and its affiliates (collectively, Mobilicity) announced today that it has adjourned the debtholder vote on the previously announced recapitalization plan. Consistent with the pursuit of all of its strategic alternatives, the Company has the right to reconvene the recapitalization plan vote on notice to its debtholders.
Mobilicity also announced today that it is in discussions with multiple parties in connection with an acquisition plan of arrangement.
Stewart Lyons, Mobilicity’s President and COO said, “We are working diligently to reach an acquisition agreement and thank our customers, dealers, employees and partners for their continued support as we see this process through to its completion.”
Mobilicity will continue to provide updates as warranted. For more information, please visit www.mobilicity.ca/investorrelations.
About Mobilicity (DAVE Wireless):
Mobilicity, Canada’s smart mobile carrier, was created to bring down the cost of wireless with unlimited talk, text and data plans, affordable North American coverage, plus popular handsets and smartphones – without locking customers into contracts or charging extra or hidden fees. Everything Mobilicity does adds up to a better wireless experience, not an expensive one. NOW THAT’S SMART.
Formerly known as Data & Audio-Visual Enterprises Wireless Inc. (DAVE Wireless), the company is led by Obelysk, a diversified Canadian holding company, and Quadrangle Capital Partners, a global investor in the telecommunications and media sectors. Mobilicity was named one of Canada’s Top 25 Up and Coming Information & Communication Technology start-ups in 2010 by the Branham Group Inc. Further information about Mobilicity can be found at www.mobilicity.ca.