Canada’s six-year drive to boost competition in the wireless industry took a step forward after Globalive Wireless Management Corp. agreed to buy VimpelCom Ltd. (VIP)’s stake in upstart carrier Wind Mobile.
Globalive, in a deal backed by a group of investors led by West Face Capital Inc., is paying about C$135 million ($122 million), VimpelCom said today. The buyer assumes about C$160 million of debt. Tennenbaum Capital Partners LLC, LG Capital Investors, Novus Wireless Communications and Serruya Private Equity were part of the deal, Toronto-based Globalive said.
The transaction gives Wind the funding needed to build out its presence in Ontario, British Columbia and Alberta by buying airwaves at government auctions set for early next year, Chief Executive Officer Anthony Lacavera said in an interview. The Canadian government has championed the creation of a fourth national wireless carrier in an effort to foster competition and reduce mobile phone rates. The three biggest carriers, Rogers Communications Inc. (RCI/B),BCE Inc. (BCE) and Telus Corp. (T), together control 90 percent of the market.
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