06/24/2015 08:42 EDT | Updated 06/24/2016 05:59 EDT

Mobilicity says OK to $465M takeover offer from Rogers

Canadian wireless company Mobilicity has accepted a $465-million takeover offer from larger rival Rogers Communications Inc., and will seek court approval for it.

According to court documents filed by the company monitoring Mobilicity's restructuring process, the Vaughan, Ont.-based company has agreed to be bought out by Rogers. The deal has the backing of "substantially all of [Mobilicity's] secured debt holders," according to William Aziz, chief restructuring officer.

Mobilicity has been under creditor protection since April 2013. It has a stable of about 150,000 customers clustered in Ottawa, Toronto, Calgary, Edmonton and Vancouver, and owns valuable spectrum that it purchased for $243 million in a government auction in 2008, one that gave birth to the company and many others, including Wind.

Mobility twice before sold itself to Telus before the federal government quashed those deals, as it would have reduced competition. 

"It is my understanding, given recent developments in the Canadian wireless industry and specifically recent auctions of spectrum, that Industry Canada no longer has the same concerns it once did about 'undue spectrum concentration' among certain wireless carriers in Canada," Aziz said.

He notes that the offer from Rogers, based in Toronto, is for far more than previous offers, and has the backing of the company's lenders, too.

"The Rogers Sale will result in greater proceeds to stakeholders than any other prior attempt to sell the business of the Mobilicity Group to date," the filing reads.