For well over a year Manitoba Telecom Services (MTS) has been looking to dump Allstream but struggled to find a suitable bidder, and late last week the found one in Accelero Capital Holdings S.? r.l. Group. Accelero is an investment and management group focused on telecommunication, digital media and technology. The investment group has paid $520 million for Allstream, of course this is subject to approval by the MTS Board of Directors and is expected to close in the second half of 2013, subject to receipt of Investment Canada approval and customary closing conditions.
Pierre Blouin, Chief Executive Officer, said, “This transaction makes MTS a stronger, more focused and more valuable company. MTS goes forward as a pure-play telecom with a strong consumer franchise and significant free cash flow to support our dividend. We will also have sufficient capital to invest in wireless spectrum and to continue bringing fibre-to-the-home, 4G LTE wireless technology and other products and services to more communities across Manitoba, further solidifying our position as the undisputed market leader in the province.”
Accelero was established by former Orascom Telecom, Wind Telecom and VimpelCom executives, and Orascom Telecom is the firm that took full control of WIND Mobile back in October 2012. Fongo is currently doing its due diligence to acquire WIND Mobile.