Wind promises government it will invest in network

The government has approved the buyout of Wind Mobile from VimpelCom Ltd. by a consortium led by Anthony Lacavera's Globalive Capital with a number of attached conditions, including that the new ownership group "significantly invest capital with the aim of purchasing spectrum." A statement from Industry Minister James Moore Tuesday said the transaction "will contribute to a more robust and competitive wireless industry in Canada." Industry Canada also approved the transfer of all spectrum licences to the new ownership group, Moore said, adding that this "concludes all government of Canada regulatory approvals for this acquisition." A source with knowledge of the situation said the transaction will close in the coming days after a few internal matters at Wind are worked out. In September, Lacavera said he was leading a group that includes Toronto-based investment firm West Face Capital, as well as U.S. investors Tennenbaum Capital Partners and LG Capital Investors, to purchase Amsterdam-based VimpelCom's 65 per cent stake in Wind Mobile for $135 million in cash and the assumption of about $150 million in debt. Moore said the consortium purchasing Wind Mobile agreed to the following conditions: Wind's head office will stay in Canada; most of its head office employees will be Canadian; it will remain incorporated under Canadian and provincial laws; it will give Canadian suppliers "a fair and equitable opportunity to compete" for its business; and it will "significantly invest capital with the aim of purchasing spectrum and growing" its mobile service across the country. Lacavera, the chairman of Wind who recently stepped down as CEO, said in an email statement that he is pleased with the government's approval. "These approvals reinforce the government’s commitment to wireless competition in Canada and signal Wind Mobile's stable ownership," he said. The new CEO, Pietro Cordova, said in the statement: "In the coming months and years, Wind Mobile will continue our network and distribution rollout, and continue to improve our already market-leading value proposition." In response to a question about the condition for capital investment, Lacavera said in an email Tuesday he cannot confirm Wind's participation in the upcoming AWS-3 or 2500 MHz auctions. However, he said "I can reconfirm that Wind requires additional spectrum to roll out LTE in the coming years, and we plan to assess all potential sources and successfully acquire the spectrum we need." — With reporting by Derek Abma at dabma@thewirereport.ca and editing by Anja Karadeglija at akarad@thewirereport.ca

Wind promises government it will invest in network

News | November 4, 2014

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Wind promises government it will invest in network

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