Quebecor closes acquisition of Freedom Mobile

Quebecor (QBCRF) and Shaw Communications (SJR) announced that the acquisition of Freedom Mobile by Videotron, a wholly-owned subsidiary of Quebecor, has been completed, creating "the fourth strong, competitive wireless service provider that Canadian consumers and governmental and regulatory authorities have been waiting for." Pierre Karl Peladeau, President and CEO of Quebecor, said: "We are very pleased to be closing the acquisition of Freedom Mobile today, bringing its Canadian footprint as well as the expertise and experience of its employees into our fold. The alliance of Freedom and Videotron will permanently transform Canada’s wireless market for the benefit of consumers and create a new competitive environment that delivers innovative products and services at better prices." The acquisition was completed on the basis of an enterprise value of C$2.85B. Videotron paid C$2.17B in cash and assumed certain debts, primarily lease obligations. The consideration paid is subject to certain post-closing adjustments. Videotron and Rogers (RCI) have also settled a commercial dispute related to a shared 4G/LTE network in Quebec and the Ottawa area. "The companies remain committed to continuing this agreement and investing in the joint network for the benefit of their respective customers," the companies stated.