Share:

VimpelCom Close to Selling WIND Mobile Stake for $300 Million

Share:

The Wall Street Journal reports VimpelCom, which holds a major stake in Canadian wireless startup WIND Mobile, is close to selling its investment for $300 million ($270 million USD):

Global telecom giant VimpelCom Ltd. is close to selling its stake in Canadian wireless carrier Wind Mobile Canada to a Toronto-based investment firm for around 300 million Canadian dollars ($270 million), according to people familiar with the matter.

Toronto-based Globalive Capital, which is controlled by Wind Chairman and Chief Executive Anthony Lacavera, would partly finance the transaction with funding from an investor group led by Canadian hedge fund West Face Capital Inc.

The sale would be to WIND Mobile CEO Anthony Lacavera’s Globalive Capital, which is said to fund the transaction backed by an investor group. This would result in WIND Mobile being able to fully control the wireless start up and try to make bigger moves to take on wireless incumbents in Canada.

According to The Globe and Mail, the new investors backing Lacavera are said to include Canadian hedge fund West Face Capital and California-based private equity firm Tennenbaum Capital Partners. WIND Mobile’s CEO still controls two-thirds of voting shares and holds roughly 35 percent of the company. The majority stake would allow WIND more freedom to make its own strategic decisions, as during the recent 700MHz wireless spectrum auction, it was VimpelCom that pulled the plug on the startup’s ability to bid.

Last month, rumours swirled saying WIND Mobile’s price tag was at $300 million, with interested buyers possibly coming from Quebecor, along with New York-based equity giant Blackstone Group LP and Providence Equity Partners Inc.

…more to follow

Share:

  • gtasscarlo

    To bad Wind sucks. I tried there $35 student plan and cancelled in one week. It’s a joke, calls go straight to voicemail. Unless Rogers buys them out and migrates the network and you can keep the plans it’s not worth it.

  • WIND hopes to expand once the AWS-3 auction kicks in next year. It would amazing if WIND and Videotron teamed up for a national network. Videotron has 700MHz licenses that WIND does not.

  • Joe

    4th big player…and that’ll scare off the Robellus!! We need a way better carrier than those seriously..I just found out Fido changed my plan 4 months before my contract ends last year..minor change though but still they didn’t tell me anything regarding the change! Now if I want that back sure.. +$15 and I can have it back…damn crooks!

  • Al

    I’ve said it before… their website is VERY deceptive. Low prices alone does not make for a good company to deal with. They try to mislead, and it stinks. Very
    unfortunate.

  • gtasscarlo

    Billing is also a diaster, the byop credits didn’t show up on my bill, this company is a joke. The only good thing is if you go to the States and use there roaming,

  • Fireeast

    Everyone is forgetting the big 3 had 30 years to build their network, it takes time and revenue to build and create your network. If more people went to wind change would happen faster and you need a high end phone to get most of the network. This also gives them more freedom say to buy mobilicity. I am very excited for this news.

Deals