The Ontario Superior Court of Justice has approved the TELUS bid to acquire Mobilicity for $380 million, noting the proposed acquisition can now proceed under the Canadian Business Corporations Act. Justice Colin Campbell said in court “I’ll sign it,” and noted he would add reasons for his approval “in due course,” according to The Globe and Mail.
David Fuller, TELUS Chief Marketing Officer responded to the announcement:
“Following on last week’s vote in favour of the proposal by Mobilicity’s debtholders, today’s court decision takes us another important step closer to completing this acquisition, which will allow TELUS to save the jobs of Mobilicity’s 150 employees and continue service for their 250,000 customers without the disruption that company’s current financial issues could cause,”
With debtholders approving the deal last week and the court now approving the TELUS bid, all that is left is regulatory approval from the Competition Bureau, and Industry Canada.
Mobilicity, which has more than $450 million in debt, first reached out to TELUS for a deal back in December 2012. During this time, both companies were involved in litigation with each other as TELUS sued Mobilicity over “misleading” TV ads, but it appears those matters are now in the past.
The last hurdle for this TELUS-Mobilicity deal belongs in the hands of the Federal government. Do you think they will approve this deal to allow an incumbent to acquire the wireless upstart?