Mobilicity debtholders approve C$380 million Telus acquisition plan

By Caroline Salls

Pittsburgh, May 23 - Data & Audio-Visual Enterprises Holdings Inc. and its affiliates (Mobilicity) said debtholders approved the acquisition plan under which Telus Corp. will acquire the company as a going concern for a purchase price of C$380 million, according to a Mobilicity news release.

The purchase price is subject to a working capital adjustment.

Mobilicity said the acquisition plan remains subject to court and regulatory approval.

A hearing for approval by the Ontario Superior Court is scheduled for May 28.

"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," Mobilicity president and chief operating officer Stewart Lyons said in the release.

Mobilicity said a vote on its recapitalization plan was postponed to a date to be announced. The company plans to move forward with an alternative recapitalization plan only if the Telus acquisition plan does not proceed.

"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," Telus chief marketing officer David Fuller said in a Telus news release.

Now that debtholders have voted in favor 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, according to the Telus release.

Mobilicity is a Toronto-based wireless carrier.

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