TELUS welcomes Mobilicity debtholder vote in favour of acquisition
VANCOUVER, May 23, 2013 /CNW/ - TELUS welcomes today's vote by Mobilicity's debtholders in favour of the company's acquisition by TELUS.
"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," said David Fuller, TELUS Chief Marketing Officer.
TELUS and Mobilicity announced May 16 that TELUS had agreed to acquire the company for $380 million, subject to approval from the company's debtholders, the court, the Competition Bureau, and Industry Canada. Earlier today, Mobilicity announced its debtholders voted in favour of the transaction.
Mobilicity has begun proceedings in the Ontario Superior Court of Justice to obtain approval for a plan of arrangement under the Canadian Business Corporations Act. Now that debtholders have voted in favour of the plan, TELUS and Mobilicity will seek court approval of a transaction that will see Mobilicity emerge as a wholly-owned subsidiary of TELUS.
TELUS and Mobilicity are seeking expeditious legal and regulatory reviews due to the current financial circumstances Mobilicity is facing.
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 can be no assurance that the associated benefits for TELUS shareholders of the acquisition will be realized, or that the expected regulatory and court approvals will be obtained. 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.
For more information about TELUS, please visit telus.com.
SOURCE TELUS Corporation