Take Three: Mobilicity Agrees to $350 Million Sale to Telus

After two deals were nixed by Industry Canada, Mobilicity and Telus are at it a third time as the former has agreed to a $350 million offer by the latter to acquire the company. The terms state Mobilicity’s 165,000 wireless users will transition to the Telus HSPA network:

“The Transaction is a good outcome from Mobilicity’s restructuring efforts and extensive Sales Process,” said William Aziz, Mobilicity’s Chief Restructuring Officer. “I am confident the Transaction will serve the best interests of Mobilicity’s customers and employees.”

Aziz continues with “we have found them a good home with TELUS,” and says there will be no changes to the network and prepayment plans will continue to be honoured. Phones will also continue to work and their dealer network remains open to business.

When Telus took over Public Mobile recently, the company changed over its network and required all customers to buy new compatible cellphones.

The sale of course is subject to a number of conditions, including approval by the Ontario Superior Court of Justice, the Competition Bureau, Industry Canada, and Mobilicity’s debtholders.

Industry Canada hinted back in February it would oppose a third Telus bid to acquire Mobilicity, citing “we’ve been clear that we will not approve any spectrum transfer that results in undue concentration.”

It’ll be interesting to see if this third proposal gets approved or not. Maybe third time’s a charm?