Anthony Lacavera Said to Be Buying VimpelCom’s Stake in Wind Mobile for $300 Million

by Istvan Fekete on September 16, 2014

Wind Mobile’s Canadian founder is said to be buying out VimpelCom’s stake in the company, with plans to recapitalize the carrier. Anthony Lacavera is said to have the financial backing of several investors, sources familiar with the matter have told the Globe and Mail and the Wall Street Journal.

The deal is expected to be announced on Tuesday morning and should bring welcome capital to the company, while it will also mean the end of VimpelCom’s foray into the Canadian wireless market.

You may recall that the world’s sixth-largest carrier has attempted to gain full control of the company, and that the government didn’t allow it, citing national security concerns. Since then, VimpelCom has written down the $1.5 billion investment in the carrier.

According to details leaked to the Globe and Mail, the deal is between Globalive Capital, an investment company lead by Wind founder Anthony Lacavera, who will acquire all of VimpelCom’s direct and indirect debt and equity interests in the wireless startup.

Globalive’s financial backing is assured by investors such as Canadian hedge fund West Face Capital, Californian equity firm Tennenbaum Capital Partners and LG Capital Investors, Novus Wireless Communications, and Serruya Private Equity, the sources revealed.

Also participating in the deal is Lawrence Guffey, a director at T-Mobile US Inc. and senior managing director of Blackstone Group LP. The investing parties will seek regulatory approval for a change of control of Wind from Globalive Capital to a consortium, including Globalive Capital, the sources said.

Following the buyout, Wind would likely be recapitalized in a separate transaction, they added.

As the sources reveal, the transaction is expected to be worth close to $300 million, slightly more than half of that due to the consortium of investors assuming Wind’s debt.

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Written by: Istvan Fekete. www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Facebook, or YouTube.

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