Tuesday, October 8, 2013

Canada Blocks Sale of MTS Allstream to Egyptian Billionaire

The federal government of Canada has rejected the proposed acquisition of MTS Allstream by Accelero Capital Holdings S.a.r.l. ("Accelero"), citing national security grounds.

MTS Allstream said it is extremely surprised and disappointed by this decision. The company continues to argue that the sale is in Canada's net benefit and not injurious to national security.

In May, anitoba Telecom Services (MTS) agreed to sell its Allstream division to Accelero Capital Holdings , an investment and management group, for $520 million, subject to certain customary adjustments.  The deal is expected to close in the second half of 2013, subject to receipt of Investment Canada approval and customary closing conditions.

Allstream provides enterprise communications services acress Canada and counts more than 65,000 businesses - large, mid-sized, and small - among its national customer base.  Allstream operates an IP network spanning 30,000 route kms across Canada, including 18,000 route kms of inter-city fiber and 8 cross border connections to the U.S.

Accelero is an investment and management group focused on telecommunication, digital media and technology. Accelero is controlled by Egyptian billionaire Naguib Sawiris, Non-Executive Chairman and Co-Founder, is a renowned telecom entrepreneur.


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