Rogers Wireless Successful in Tender Offers to Acquire Microcell
November 08 2004 - 9:05AM
PR Newswire (US)
Rogers Wireless Successful in Tender Offers to Acquire Microcell
Combination of Rogers Wireless and Microcell Creates Canada's
Largest Wireless Carrier Serving Approximately 5.5 Million
Customers from Coast to Coast; TORONTO and MONTREAL, Nov. 8
/PRNewswire-FirstCall/ -- Rogers Wireless Inc. ("RWI" or "Rogers
Wireless"), a wholly-owned subsidiary of Rogers Wireless
Communications Inc., announced today that the terms and conditions
of its tender offers for the securities of Microcell
Telecommunications Inc. ("Microcell") have been satisfied with the
necessary number of securities having been successfully tendered
and regulatory approvals secured to complete the acquisition. The
acquisition of Microcell by Rogers Wireless creates Canada's
largest wireless carrier with the most extensive integrated
wireless voice and data network in the country. With approximately
5.5 million customers and a nationwide network operating on the
world standard GSM/GPRS technology, the combined company will offer
consumers and businesses maximum coverage from coast to coast, an
extensive portfolio of advanced wireless data services and devices,
and the largest international roaming coverage of any wireless
provider in Canada. As a result of the successful tender offers,
Rogers Wireless has taken up and accepted for payment approximately
181,721 Class A Restricted Voting shares, 28,389,649 Class B
Non-Voting shares, 3,296,652 Warrants 2005 and 5,405,387 Warrants
2008, being all of the securities of Microcell validly tendered to
the offers and not withdrawn prior to the 5:00 p.m. November 5,
2004 expiry time. The tendered securities represent approximately
96% of the outstanding Class A Restricted Voting shares, 92% of the
outstanding Class B Non-Voting shares, 82% of the outstanding
Warrants 2005 and 81% of the outstanding Warrants 2008. "The
combination of Rogers Wireless and Microcell creates Canada's
largest wireless provider serving approximately 5.5 million
customers and positions us as an even stronger competitor," said
Ted Rogers, President and CEO, Rogers Communications. "Now, more
than ever, wireless customers across the country can count on
Rogers' leadership in delivering innovative solutions and real
choice in the Canadian communications market." "The new Rogers
Wireless is an even stronger communications company, well
positioned for continued profitable growth and committed to
providing superior service and value to our customers," said Nadir
Mohamed, President and CEO, Rogers Wireless. "The new Rogers
Wireless combines the nationwide strength of Rogers Wireless'
network and brand with Fido's unique and well established brand and
distribution channels. Together, we are now Canada's only wireless
provider operating on the world standard GSM technology platform -
meaning faster access to a wider array of new devices and services
and the ability to travel the world with a single handset."
Microcell and Rogers Wireless subscribers can count on a seamless
transition and significant benefits as the two companies are
combined. Microcell subscribers will enjoy the availability of
access to Rogers Wireless' extensive network resulting in greatly
expanded wireless coverage areas, especially outside of and between
major urban centers, and will be able to continue using their
existing wireless handsets and phone numbers. Both Rogers Wireless
and Microcell customers will benefit from the combining of network
assets which will provide for even greater coverage and quality. As
contemplated in the offers and as provided for under the compulsory
acquisition provisions of the Canada Business Corporations Act,
Rogers Wireless now intends to acquire the balance of the Microcell
Class A Restricted Voting shares and Class B Non-Voting shares,
each at C$35.00 per share, and also intends to acquire the balance
of the Microcell Warrants 2005 and Warrants 2008, each at C$15.79
and C$15.01, respectively. Please see the most recent management's
discussion and analysis ("MD&A") of Rogers Wireless and Rogers
Communications dated October 27, 2004, for a discussion of
financing arrangements relating to this transaction. These
MD&A's are contained in the companies' third quarter 2004
earnings results available on the SEDAR website at
http://www.sedar.com/ and on the U.S. Securities and Exchange
Commission's website at http://www.sec.gov/. Rogers Wireless
anticipates sharing its expectations around integration costs and
synergy opportunities from combining the two companies when it
provides its 2005 overall financial and operating guidance, early
in 2005. The 2004 annual guidance that was issued for Rogers
Wireless earlier this year did not assume the acquisition of
Microcell and will not be applicable to the combined company
following closing of the acquisition. This press release is neither
an offer to purchase nor a solicitation of an offer to sell shares
of Microcell. Microcell's shareholders are advised to read the
offering documents and the directors' circular regarding the offers
referred to in this news release. The offering documents are
available on the SEDAR website at http://www.sedar.com/ and on the
U.S. Securities and Exchange Commission's website at
http://www.sec.gov/. Cautionary Statement Regarding Forward Looking
Information: This news release includes certain forward looking
statements that involve risks and uncertainties. We caution that
actual future events will be affected by a number of factors, many
of which are beyond our control, and therefore may vary
substantially from what we currently foresee. We are under no
obligation to (and expressly disclaim any such obligation to)
update or alter any forward looking statements whether as a result
of new information, future events or otherwise. Important
additional information identifying risks and uncertainties is
contained in our most recent Annual Reports and Annual Information
Forms filed with the applicable Canadian securities regulatory
authorities and the U.S. Securities and Exchange Commission. About
Rogers: Rogers Wireless operates Canada's largest integrated
wireless voice and data network, providing advanced voice and
wireless data solutions to customers from coast to coast on its
GSM/GPRS/EDGE network, the world standard for wireless
communications technology. The combination of Rogers Wireless and
Microcell will have 5.5 million wireless customers, and has offices
in Canadian cities across the country. Rogers Wireless is a
wholly-owned subsidiary of Rogers Wireless Communications Inc.
(TSX: RCM; NYSE: RCN), which is approximately 89% owned by Rogers
Communications Inc. Rogers Communications Inc. (TSX: RCI; NYSE: RG)
is a diversified Canadian communications and media company. It is
engaged in cable television, high- speed Internet access and video
retailing through Canada's largest cable television provider,
Rogers Cable Inc.; in wireless voice and data communications
services through Canada's leading national GSM/GPRS cellular
provider, Rogers Wireless Communications Inc.; and in radio,
television broadcasting, televised shopping and publishing
businesses through Rogers Media Inc. DATASOURCE: Rogers Wireless
Communications Inc. CONTACT: (Investment Community): Bruce M. Mann,
(416) 935-3532, ; Eric A. Wright, (416) 935-3550, ; (Media):
Heather Armstrong, (416) 935-6379, ; Archived images on this
organization are available through CNW E-Pix at
http://www.newswire.ca/. Images are free to members of The Canadian
Press.
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