Purchase of Mobilicity brings continuity of service and
certainty to over 150,000 wireless customers
Will exercise option to acquire Shaw's unused AWS-1 spectrum
to meet growing mobile video needs
TORONTO,
June 24, 2015 /CNW/ - Rogers
Communications will immediately boost speed and quality for
wireless customers in BC, Alberta
and Southern Ontario as part of a
series of transactions announced today. The transactions mean
Rogers is completing the previously announced acquisition of Shaw's
AWS-1 spectrum and acquiring 100% ownership of Mobilicity. The
company is also divesting, post transaction, certain AWS-1 spectrum
to WIND Mobile that is contiguous to their spectrum holdings.
"We're basically adding multiple lanes on our wireless highway
in three key markets overnight," said Guy
Laurence, President and CEO of Rogers Communications. "This
means faster speeds and better quality for our customers as they
use more and more mobile video."
"The transaction with Rogers provides the best possible outcome
for Mobilicity's customers, dealers and employees," said
Anthony Booth, President of
Mobilicity. "Rogers ensures certainty of service for Mobilicity
customers, provides a great network, national coverage and high
quality products and services. At the same time, Mobilicity
employees will have the opportunity to work at a great Canadian
company in Rogers."
The transactions mean Rogers gains significant, previously
unused spectrum capacity that works with all LTE devices today.
"This agreement is great news for our customers and for
Canadians. We're pleased to have worked with the government to put
this unused valuable resource to work," said Laurence. "We got the
spectrum we needed where we needed it for our customers and this
keeps Rogers in the leading competitive position across the
country."
The purchase of Mobilicity is subject to approval by the
Competition Bureau and the Court. The transactions have been
approved by Industry Canada.
As per the previously announced terms to complete the Shaw
spectrum acquisition, Rogers will pay $100
million in addition to the down payments made when the
agreement was originally announced in January 2013.
The transaction with Mobilicity is supported and was facilitated
by The Catalyst Capital Group Inc., on behalf of investment funds
managed by it, working closely with Rogers on the structuring of
the transaction. The $440 million
purchase price is offset by tax losses valued at approximately
$175 million which Rogers will
acquire. The transaction is subject to working capital
adjustments.
Following the acquisition of spectrum from Shaw and Mobilicity
respectively, Rogers and WIND will undertake an AWS-1 spectrum swap
in Southern Ontario to create
contiguous spectrum for Rogers. Rogers will also divest certain
non-contiguous AWS-1 spectrum to WIND Mobile in BC, Alberta, Saskatchewan, Manitoba and Northern Ontario and Eastern Ontario.
About Rogers:
Rogers Communications is a leading diversified public Canadian
communications and media company. We are Canada's largest provider of wireless
communications services and one of Canada's leading providers of cable
television, high-speed Internet and telephony services to consumers
and businesses. Through Rogers Media, we are engaged in radio and
television broadcasting, televised shopping, magazines and trade
publications, sports entertainment, and digital media. Our stock is
publicly traded on the Toronto Stock Exchange (TSX: RCI.A and
RCI.B) and on the New York Stock Exchange (NYSE: RCI). For further
information about the Rogers group of companies, please
visit rogers.com.
About Mobilicity:
Mobilicity is a wireless carrier that provides wireless
telecommunication services to Canadians in Toronto, Ottawa, Calgary, Edmonton and Vancouver. Further information about
Mobilicity can be found at www.Mobilicity.ca.
Caution Regarding Forward Looking
Statements:
This news release contains statements about expected future events
that are forward-looking including, but not limited to, remaining
required regulatory approvals and final steps necessary to close
the transactions. By their nature, forward-looking statements
require Rogers to make assumptions and predictions and are subject
to inherent risks and uncertainties which give rise to the
possibility that actual results or events could differ materially
from our expectations expressed in or implied by such
forward-looking statements. All such forward-looking statements are
made pursuant to the "safe harbour" provisions of the applicable
Canadian and United States
securities laws. Readers are cautioned not to place undue reliance
on forward-looking statements as a number of factors could cause
actual future events to differ materially from that expressed in
the forward-looking statements. Except as required by law, Rogers
disclaims any intention or obligation to update or revise
forward-looking statements.
SOURCE Rogers Communications Inc.