Canadian private equity firm Catalyst Capital will no longer participate in the country’s 700 MHz spectrum auction in January.
The firm, which specialises in distressed debt investing, holds a significant amount of bonds in struggling Mobilicity.
The…
Canadian private equity firm Catalyst Capital will no longer participate in the country’s 700 MHz spectrum auction in January.
The firm, which specialises in distressed debt investing, holds a significant amount of bonds in struggling Mobilicity.
The small mobile operator did not apply to take part in the auction and is being protected from its creditors – including Catalyst – by the courts. Its founder John Bitove is among the auction bidders.
Mobilicity’s court-appointed administrator Ernst & Young is overseeing a sale of the business and has set a deadline of 9 December for interested buyers to submit bids.
Catalyst is not known to have any other interests in Canadian telecoms beyond its stake in Mobilicity. Earlier this year it was reported that the firm was weighing up a bid to take over Mobilicity and its rival Wind Mobile.
However, the firm has not been linked again in recent months. Instead, Wind has emerged as a frontrunner to buy the minnow.
Mobilicity’s rival Public Mobile was recently acquired by larger operator Telus. The incumbent has repeatedly tried to buy Mobilicity as well, but has been blocked by the government; Telus was allowed to acquire Public as its spectrum was not suitable for data services whereas Mobilicity’s is.
There are now 11 bidders participating in the 700 MHz auction – down from an initial 15 as other smaller bidders have pulled out.
