Orascom Telecom to assume ownership of Wind Mobile Canada

Orascom Telecom has announced that it is buying out the co-founder in its Canadian subsidiary, Wind Mobile. Orascom Telecom is majority owned by Russia’s VimpelCom. Upon closing, Orascom will own an indirect 99.3 per cent interest in the mobile network operator.

The mobile network now counts around 600,000 customers.

Under the terms of the deal, Wind Mobile’s founder, chairman and CEO, Anthony Lacavera is to transfer his shares in Wind Mobile Canada to Orascom. The financial details are not being disclosed.

Lacavera will retain the landline assets owned by Wind Mobile.

Lacavera, who plans to launch a new initiative, Globalive Capital in 2013, will remain Wind Mobile’s chairman and CEO until closing, and will continue in a non-operational capacity as Wind Mobile Canada’s Honorary Chair.

Completion of the transaction is subject to satisfaction of certain conditions, including Canadian regulatory approval of the conversion of Orascom’s non-voting shares into voting shares, which would result in Orascom holding an indirect 65.1 per cent voting and economic interest in Globalive Wireless Management immediately before completion of the transactions with Lacavera.

Orascom currently holds an indirect 32 per cent voting interest and 65.1 per cent economic interest in Wind Mobile Canada. Lacavera’s holding company, AAL Corp/ currently holds an indirect 66.7 per cent voting interest and 34.3 per cent economic interest.