Orascom Telecom to Buy Full Control of Canada's Wind Mobile
Published on: 18th Jan 2013
Note -- this news article is more than a year old.
By: Ian Mansfield
Egypt's Orascom Telecom has announced that it is buying out the co founder in its Canadian subsidiary Wind Mobile. Orascom Telecom is majority owned by Russia's VimpelCom. Upon closing Orascom will own an indirect 99.3% interest in the mobile network operator.
The mobile network, which was controversially supported by Orascom Telecom during its start-up phase now has around 600,000 customers.
Under the terms of the deal, Wind Mobile's founder, Chairman and Chief Executive Officer, Anthony Lacavera is to transfer his shares of Wind Mobile Canada to Orascom. The financial details are not being disclosed.
Mr. Lacavera will retain the landline assets owned by Wind Mobile.
Mr. Lacavera, who plans to launch a new initiative, Globalive Capital in 2013, will remain Wind Mobile's Chairman and CEO until closing, and will continue in a non-operational capacity as Wind Mobile Canada's Honorary Chair.
Completion of the transactions is subject to satisfaction of certain conditions, including Canadian regulatory approval of the conversion of Orascom's non-voting shares into voting shares, which would result in Orascom holding an indirect 65.1% voting and economic interest in Globalive Wireless Management immediately before completion of the transactions with Anthony Lacavera. Orascom currently holds an indirect 32% voting interest and 65.1% economic interest in Wind Mobile Canada. Anthony Lacavera's holding company, AAL Corp/ currently holds an indirect 66.7% voting interest and 34.3% economic interest.