Transaction|October 7, 2013
Accelero's bid to acquire Allstream
Torys acted as counsel to Accelero Capital with a team that included Kevin Morris, Laurie Duke and Shirin Mirsaeidi (M&A), Dany Assaf (competition and foreign investment), Mitch Frazer (employment), Dan Logan (technology), Stefan Stauder (U.S. corporate), Dennis Mahony (environmental) and Corrado Cardarelli (tax).
On May 24, 2013, Accelero Capital Holdings S.ὰ r.l. Group (Accelero) announced the signing of a binding agreement with Manitoba Telecom Services Inc. (MTS Allstream) to acquire the Allstream business (Allstream) in a transaction valuing Allstream at C$520 million. The deal, which is subject to certain customary adjustments, including assumed debt obligations and normalized working capital, as well as certain pension related obligations, was expected to close in the second half of 2013.
The Federal Government rejected the proposed acquisition on October 7, 2013, despite far-reaching, comprehensive and binding undertakings proposed by Accelero to the Canadian government. The determination was made on the grounds of unspecified national security concerns. This is the fourth time that the Federal Government has thwarted a foreign takeover since 2008. MTS Allstream and Accelero, with advice from their respective legal and financial advisors, are reviewing their options.
Allstream is a division of Manitoba Telecom Services, Inc. (MTS). MTS specializes in the development and marketing of media products and services, bridging the fields of telecommunications, advertising, computing, publishing, and electronic commerce.
Accelero Capital is an investment and management group focused on telecommunication, digital media and technology.
Further information can be found on Accelero's website, as well as at theglobeandmail.com.
The Federal Government rejected the proposed acquisition on October 7, 2013, despite far-reaching, comprehensive and binding undertakings proposed by Accelero to the Canadian government. The determination was made on the grounds of unspecified national security concerns. This is the fourth time that the Federal Government has thwarted a foreign takeover since 2008. MTS Allstream and Accelero, with advice from their respective legal and financial advisors, are reviewing their options.
Allstream is a division of Manitoba Telecom Services, Inc. (MTS). MTS specializes in the development and marketing of media products and services, bridging the fields of telecommunications, advertising, computing, publishing, and electronic commerce.
Accelero Capital is an investment and management group focused on telecommunication, digital media and technology.
Further information can be found on Accelero's website, as well as at theglobeandmail.com.