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SOURCE Accelero Capital
TORONTO, Oct. 7, 2013 /CNW/ - Accelero Capital Holdings S.à.r.l.
("Accelero") is very disappointed by the Federal
Government's unexpected rejection of its proposed acquisition of
Accelero announced its plan to acquire Allstream, a division of Manitoba
Telecom Services Inc. (TSX:MBT) ("MTS Allstream"), on May 24, 2013. The
proposed transaction was the result of an extensive strategic review
process launched by MTS Allstream and was consistent with the Federal
Government's stated policy goal of attracting foreign investment to
increase competition in Canada's telecommunications sector.
Accelero invested considerable human and financial resources in this
transaction, and committed to an investment of $300 million to increase
Allstream's competitiveness and accelerate the introduction of
innovative new products to increase the productivity of Canadian small,
medium and enterprise businesses.
Accelero believes its investment in Allstream would have contributed to
increased competition in Canada's telecommunications sector, sent a
strong message that Canada's telecommunications sector is open to
foreign investment and enabled Allstream to accelerate the introduction
of innovative products to increase the productivity of Canadian
It is on this basis that Accelero worked closely with the Federal
Government, MTS and Allstream trying to ensure that the transaction
met all the policy, legislative and business criteria required
to ensure a successful conclusion to the deal. This transaction was
structured to promote the Government's stated telecom investment
policy, to increase competition, to enhance Canadian
productivity, to benefit the Canadian-listed MTS, its stakeholders and
all Canadians, while seeking to address any Government concerns.
"Throughout this process, we were comforted by Industry Canada that our
filings were in order, our submissions complete and constructive, and
our proposed binding undertakings serious and substantive so that
the transaction would meet the 'net benefit' test," said Accelero
co-founder and global telecom entrepreneur, Naguib Sawiris.
"We are disappointed by the Government of Canada's unfounded and
unexpected decision. Accelero has an impressive track record of
successful investments in many of the countries with whom Canada enjoys
global strategic partnerships. Accelero founders have previously led
the investment of approximately $1 billion in Canada's
telecommunications sector, beginning with the 2008 AWS spectrum
About Accelero Capital
Accelero is an investment and management group focused on
telecommunication, digital media and technology. Accelero's team has an
unparalleled track record in strategic, operational and financial
management. Accelero was established by former Orascom Telecom, Wind
Telecom and VimpelCom executives: Ossama Bessada, former CEO of Wind
Italy and former Head of Europe and North America Business Unit of
VimpelCom; Khaled Bichara, former President and Chief Operating Officer
of VimpelCom and former Group Chief Executive Officer of Orascom
Telecom and Wind Telecom; and Aldo Mareuse, former Group Chief
Financial Officer of Orascom Telecom and Wind Telecom. Accelero is
backed by Naguib Sawiris, a renowned global telecom entrepreneur. The
Accelero team leverages its expertise and sector know-how to identify
high-growth assets and assets with turnaround potential. http://www.accelerocapital.com
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