Mobilicity Debtholders Vote in Favour of TELUS Acquisition
Mobilicity debtholders this morning voted in favour of a $380 million acquisition by TELUS, a deal both companies announced a week ago. Stewart Lyons, Mobilicity President and Chief Operating Officer and the following to say:
“We are pleased to have received the support of our debtholders for the TELUS Acquisition Plan. This is a significant step towards final approval of the Plan through which the business, combined with the financial strength of TELUS, can be continued in a way that will benefit our customers and employees.”
TELUS responded to the announcement with David Fuller, TELUS Chief Marketing Officer noting:
“Today’s positive vote is an important step on the road to allowing TELUS to sustain service for Mobilicity’s quarter-million customers and preserve the jobs of their 150 employees without a disruption caused by their current financial challenges,”
The deal is still subject to approval from the company’s debtholders, the court, the Competition Bureau, and Industry Canada. Mobilicity has started proceedings in the Ontario Superior Court of Justice to acquire approval under the Canadian Business Corporations Act for a plan of arrangement, on top of court approval of a transaction to permit the newer wireless entrant to become a wholly-owned subsidiary of TELUS.
TELUS earlier revealed Mobilicity first approached the company for a deal last December.