Canadian wireless operator TeraGo has appointed Houlihan Lokey and Canaccord Genuity for a strategic review of the company in light of changes to the country’s foreign investment regulation.
The review will identify, examine and consider a range of…
Canadian wireless operator TeraGo has appointed Houlihan Lokey and Canaccord Genuity for a strategic review of the company in light of changes to the country’s foreign investment regulation.
The review will identify, examine and consider a range of strategic options available to TeraGo with a view to enhancing shareholder value, Terago said in a statement.
In June, before Canada’s Telecommunications Act was amended, TeraGo CEO Brian Boyd said the wireless operator would be interested in simple investment in the short term, but that a joint venture or sale of the company was possible in the future.
Following the recent amendment of the telecommunications act, part of the federal budget bill, foreign investors are now longer restricted in their investments in telcos with 10% or less market share by revenue. Before the new law was passed, non-Canadians had been prohibited from owning more than 20% of voting shares in telcos. They had also been limited to indirect control of 46.7%, which could work out as a ceiling of 33.3% in a combination of voting and non-voting stock.
TeraGo’s strategic review committee is comprised of the Company’s four independent directors: Charles Allen, Grant Ballantyne, Jim McDonald and Jerry Grafstein Q.C.
TeraGo has a market capitalisation of US$112.84m.
