TELUS Corp. has referred to the federal government’s recent decision not to approve its proposed acquisition of Mobilicity, a.k.a. Data & Audio-Visual Enterprises Wireless Inc., for $380 million as “unfortunate.” In an official response, TELUS said the decision has now created “considerable uncertainty” for Mobilicity’s customers, employees and debt holders “due to the pressing financial challenges facing the company.” The Toronto-based mobile service provider has been backed by U.S. private equity firm Quadrangle Capital Partners since 2008.
TELUS today provided the following comments in response to Industry Canada’s decision regarding TELUS’ proposed acquisition of Mobilicity. Following earlier approvals from Mobilicity debt holders and the court, earlier today Industry Minister Christian Paradis announced the government will not approve TELUS’ acquisition of the struggling wireless company.
Today’s decision is unfortunate for Mobilicity’s 250,000 customers, 150 employees and debtholders, who now face considerable uncertainty due to the pressing financial challenges facing the company. TELUS will drive on with our proven strategy that has served us so successfully over the years. We will continue to focus on our sustained investment in wireless infrastructure, broadband data services and putting our customers first.
Caution Regarding Forward Looking Statements
This news release contains statements about expected future events of TELUS that are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and predictions and are subject to inherent risks and uncertainties. There is significant risk that the forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause actual future events to differ materially from that expressed in the forward-looking statements. Except as required by law, TELUS disclaims any intention or obligation to update or revise forward-looking statements.
TELUS (TSX: T, NYSE: TU) is a leading national telecommunications company in Canada, with $11 billion of annual revenue and 13.2 million customer connections, including 7.7 million wireless subscribers, 3.4 million wireline network access lines, 1.4 million Internet subscribers and 712,000 TELUS TV customers. Led since 2000 by President and CEO, Darren Entwistle, TELUS provides a wide range of communications products and services, including wireless, data, Internet protocol (IP), voice, television, entertainment and video.
In support of our philosophy to give where we live, TELUS, our team members and retirees have contributed more than $300 million to charitable and not-for-profit organizations and volunteered 4.8 million hours of service to local communities since 2000. Fourteen TELUS Community Boards lead TELUS’ local philanthropic initiatives. TELUS was honoured to be named the most outstanding philanthropic corporation globally for 2010 by the Association of Fundraising Professionals, becoming the first Canadian company to receive this prestigious international recognition.
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