Ottawa has approved the buyout of Wind Mobile’s Dutch-based majority shareholder.
The deal will keep the wireless company under Canadian control and provide it with a steady stream of financing.
Industry Minister James Moore said in a statement that “this acquisition will contribute to a more robust and competitive wireless industry,”
Industry Canada has given the green light for the transfer of radio wave spectrum.
The conditions of the transactions were accepted by investors, including Canadian hedge fund West Face Capital and Wind founder and chair Anthony Lacavera.
Wind Mobile’s head office will stay in Canada and the majority of employees will be Canadian. It will be incorporated under Canadian or provincial laws.
The consortium of investors, which will be providing the majority of the $300 million in new financing, said that Canadian-based suppliers will be provided with a “fair and equitable” opportunity to compete for Wind business and to “significantly invest capital with the aim of purchasing spectrum.”
The Dutch company wanted to acquire the rest of Wind, however, Ottawa intervened over foreign ownership rules.
Lacavera said that Wind will need funding from the consortium or other investors to upgrade its wireless network. The company also needs more airwave spectrum to improve the network’s speed and coverage.
Chief executive Pietro Cordova said in a statement.
“In the coming months and years Wind will continue our network and distribution rollout, and we’ll continue to improve our already market-leading value proposition,”
Discover more from Market Business News
Subscribe to get the latest posts sent to your email.