Canada’s Rogers Communications (TSE:RCI) has closed its acquisition of small wireless operator Mobilicity and spectrum from DTH broadcaster Shaw Communications (TSE:SJR).
The completion follows Rogers receiving all requisite governmental, creditor…
Canada’s Rogers Communications (TSE:RCI) has closed its acquisition of small wireless operator Mobilicity and spectrum from DTH broadcaster Shaw Communications (TSE:SJR).
The completion follows Rogers receiving all requisite governmental, creditor and court approvals to seal the combined C$540m transactions.
Rogers spent C$440m on indebted Mobilicity, which has been under court protection from its creditors since October 2013.
Rogers’s rival Telus has twice tried to buy Mobilicity, but was knocked back by the government on both occasions due to concerns over the concentration of spectrum in the hands of leading telcos Rogers, Telus and Bell.
Rogers’s takeover of Mobilicity was this time allowed because the spectrum landscape has since changed. Earlier this year, fourth player Wind Mobile won 30 MHz of AWS-3 spectrum, increasing the amount of frequencies it holds by 180%.
Rogers said the Mobilicity deal was facilitated by The Catalyst Capital Group on behalf of managed investment funds. The C$440m purchase price is offset by C$175m in tax losses, which Rogers will acquire.
Rogers spent C$100m to acquire Shaw’s unused AWS-1 spectrum, which it will use to meet its growing mobile video needs.
Following the acquisition of Mobilicity and the Shaw spectrum, Rogers will divest some non-contiguous AWS-1 spectrum to number four player Wind Mobile in several provinces. Rogers and Wind will also swap AWS-1 spectrum in Southern Ontario to create contiguous spectrum for Rogers.
