Industry Canada today approved the proposed buyout by AAL Acquisitions Corporation of Dutch-based VimpelCom’s share in WIND Mobile. The CA$135 million deal (CA$300 million including debt) was first announced in September and was orchestrated by WIND Mobile Chairman Tony Lacavera through his investment company Globalive Capital and a consortium of financial backers that includes West Face Capital, Tennenbaum Capital Partners, LG Capital Investors, Serruya Private Equity, and Novus Wireless Communications.
According to Industry Minister James Moore:
“AAL Acquisitions Corporation’s application to acquire control of WIND Mobile has been approved.
Protecting consumers and increasing competition in the wireless market are priorities for our Government. Since 2008, our Government has made clear decisions to ensure Canada’s telecommunications market is competitive so that Canadians benefit from more choice, lower prices and better service.
Foreign investment transactions are reviewed on their merits and the overall economic benefit for Canada. In making my determination, I concluded that this acquisition will contribute to a more robust and competitive wireless industry in Canada.”
The Canadian government approval includes the transfer of spectrum licenses to the new owner. it also imposes a number of conditions that new owner, AAL Acquisitions Corp. which represents the consortium, has agreed to. These include keeping WIND Mobile’s headquarters in Canada , remaining incorporated under Canadian federal or provincial laws and providing Canadian-based suppliers with a fair and equitable opportunity to compete for WIND Mobile’s business.
The deal also opens the doors to WIND Mobile participating in the upcoming AWS-3 spectrum auction in a bid to secure additional licenses to broaden its reach.
Needless to say, WIND Mobile welcomed today’s news:
“WIND Mobile is the established alternative to the Big Three mobile service providers in Ontario, British Columbia and Alberta,” said Anthony Lacavera, Chairman, WIND Mobile. “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.”
“In the coming months and years WIND Mobile will continue our network and distribution rollout, and we’ll continue to improve our already market-leading value proposition,” said Pietro Cordova, CEO, WIND Mobile.
Sources : Industry Canada // WIND Mobile