Rogers Wireless Communications Inc. today announced plans to purchase Microcell Telecommunications Inc. in an all c...
September 20, 2004
Rogers Wireless Communications Inc. today announced plans to purchase Microcell Telecommunications Inc. in an all cash deal totaling $1.4 billion.
As part of the agreement, the company has agreed to purchase Microcell’s Class A Restricted Voting shares and Class B Non-Voting shares for $35 per share.
As well, Rogers Wireless will offer to purchase the 2005 warrants for $15.79 and 2008 warrants for $15.01. Subject to regulatory approvals and Microcell shareholder acceptance, the transaction is expected to close before
the end of the year.
The combined businesses will operate Canada’s only nationwide GSM/GPRS/EDGE wireless network and will serve over 5.1 million voice and data customers, the two companies said in a statement.
The Board of Directors of Microcell, which owns the Fido brand name, will recommend that its shareholders support the offer.
“This transaction will position Rogers to better compete against incumbent telco wireless operators in Canada,” said Ted Rogers, President and CEO of Rogers Communications Inc. “It also ensures a healthy, competitive marketplace and all of the associated benefits for wireless customers across Canada.”
Nadir Mohamed, President and CEO, Rogers Wireless said the combination will make the company the largest wireless operator in Canada with over 5.1 million voice and data customers across the country.