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Mobilicity debtholders approve Telus buyout of firm

Debtholders of Mobilicity today approved the company's acquisition by Telus Communications Company.


May 23, 2013  


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Debtholders of Mobilicity today approved the company’s acquisition by Telus Communications Company.

“Today’s positive vote is an important step on the road to allowing (us) 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,” said David Fuller, chief marketing officer at Telus.

On May 16 the two companies announced that Telus had agreed to acquire the company for $380 million, subject to approval from the company’s debtholders, the court, the Competition Bureau, and Industry Canada. 

Mobilicity has begun proceedings in the Ontario Superior Court of Justice to obtain approval for a plan of arrangement under the Canadian Business Corporations Act. Now that debtholders have voted in favour of the plan, the two firms will seek court approval of a transaction that will see Mobilicity emerge as a wholly-owned subsidiary of Telus.