Catalyst Capital Group and other Debt holders in mobile service provider Mobilicity, a.k.a. Data & Audio-Visual Enterprises Wireless Inc., have approved the company’s acquisition by Canadian telecommunications company TELUS Corp. for $380 million. As previously announced, the purchase price will be applied to repay all of the company’s first and second lien debt, with the remainder being used to repay certain other unsecured debt securities. Mobilicity’s other backers include U.S.-based private equity firm Quadrangle Capital Partners.
TELUS Acquisition Plan approved at meeting of Mobilicity debtholders on Thursday, May 23, 2013
Toronto, ON – May 23, 2013 – Data & Audio-Visual Enterprises Holdings Inc. and its affiliates (collectively, Mobilicity) today announced that debtholders approved the Acquisition Plan under the terms of the Interim Order of the Ontario Superior Court of Justice (Commercial List) dated Friday, April 26, 2013 (the TELUS Acquisition Plan). Under the TELUS Acquisition Plan, TELUS Corporation (TELUS) will acquire Mobilicity as a going concern for a purchase price of $380 million, subject to a working capital adjustment. The TELUS Acquisition Plan remains subject to satisfaction of certain conditions precedent, which include court and regulatory approval. A hearing for court approval of the TELUS Acquisition Plan has been scheduled for May 28, 2013.
Stewart Lyons, Mobilicity President and Chief Operating Officer, said, “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.”
If approved, the TELUS Acquisition Plan will ensure continued service to Mobilicity’s 250,000 customers without the risk of disruption and provide the Company’s employees with the potential for new opportunities as part of a larger organization.
Mobilicity also announced that a vote on the Recapitalization Plan was postponed to a date to be announced. Mobilicity plans to pursue an alternative Recapitalization Plan only in the event that the TELUS Acquisition Plan does not proceed. With the positive result of today’s debtholder vote, the TELUS Acquisition Plan remains the best way forward for Mobilicity.
For more information on the TELUS Acquisition Plan and Recapitalization Plan, please visit Mobilicity’s website at www.mobilicity.ca/investorrelations.
About Mobilicity (DAVE Wireless): Formerly known as Data & Audio-Visual Enterprises Wireless Inc. (DAVE Wireless), the company operated as Mobilicity. Mobilicity is a wireless carrier that provides wireless telecommunication services to Canadians in Toronto, Ottawa, Calgary, Edmonton and Vancouver. Further information about Mobilicity can be found at www.mobilicity.ca.
For more information please contact: Sheryl Steinberg, Mobilicity, email@example.com, 647-707-7377 or Joel Shaffer, Longview Communications Inc. at 416-649-8006
(Correction: The original post incorrectly stated that Catalyst Capital Group was among Mobilicity’s debt holders which approved the company’s proposed acquisition by Canadian telecommunications company TELUS Corp. for $380 million. Catalyst did not vote in favour of the proposal that was put forward.)
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