Mobilicity’s court-appointed administrator has proposed a speedy auction process to find a buyer for the indebted Canadian minnow.
Providing the court approves Ernst & Young’s plan, Mobilicity’s financial adviser will solicit bids from parties…
Mobilicity’s court-appointed administrator has proposed a speedy auction process to find a buyer for the indebted Canadian minnow.
Providing the court approves Ernst & Young’s plan, Mobilicity’s financial adviser will solicit bids from parties that have previously expressed interest ahead of a bid deadline set for early December.
In a disclosure earlier this year relating to Telus’ failed attempt to take the small operator over, Mobilicity said it had contacted approximately 40 strategic buyers between Q3 2012 and Q1 2013 in attempts to find itself a buyer.
Ernst & Young has proposed that bidders formally register their interest by 2 December and submit their offers by 9 December. The administrator said the swift timetable was feasible as all or most of the potential bidders would be familiar with the asset and be able to respond quickly.
Mobilicity has until 20 December to restructure or find a buyer after a court decided to extend its creditor protection beyond 30 October. It began this process at the end of September after struggling to satisfy its debt-holders.
Meanwhile, Mobilicity has said it is still in talks with Industry Canada regarding a sale to Telus. This is in spite of the industry minister James Moore saying he will not allow a sale of Mobilicity’s AWS spectrum – its primary asset – if it could result in undue spectrum concentration.
In an interview last week, Telus’ CEO Darren Entwistle said he remains keen on a deal for Mobilicity in spite of the government’s stance. If Telus acquired the Toronto operator’s frequencies, it would only take its share of Canada’s total spectrum up from 16% to 17%, according to a local report.
