GLENTEL Completes 83% Acquisition of AMT Group - Australia's Largest
Multi-Carrier Mobile Phone Retailer
BURNABY, BC, Nov. 1, 2012 /CNW/ - GLENTEL Inc. (TSX: GLN), the largest
independent multi-carrier phone retailer in Canada, announced today that it
has completed the 83% share purchase of Sydney, Australia-based AMT Group Pty
Ltd (AMT Group), which operates under the Allphones retail brand.
"I would like to welcome the AMT Group's shareholders, employees, Allphones'
franchisees and licensees to the GLENTEL family," stated Tom Skidmore,
GLENTEL's President and Chief Executive Officer. "With the successful
acquisition of the AMT Group, GLENTEL now operates in three distinct world
markets and on two continents, with over 750 retail locations worldwide."
AMT Group is the leading independent multi-carrier mobile phone and
telecommunications retailer in Australia, operating and managing over 210
stores, with annual sales of approximately AUD$162 million and over 400
corporate employees. As part of the agreement, the Executive Shareholders have
retained a 17% equity stake in AMT Group and continue to work in their
executive leadership roles.
The total purchase price for 83% of AMT Group was AUD$66.1 million (CDN$67.7
million) of cash considerations and the assumption of an operating facility
that was drawn down by AUD$4.4 million (CDN$4.5 million) at the time of
completion, for an enterprise value of AUD$70.5 million (CDN$72.2 million).
GLENTEL funded the acquisition through CDN$17.7 million of cash and a CDN$50.0
million syndicated senior credit facility. The final purchase price is subject
to a final working capital adjustment.
The company secured a new CDN$68.5 million 5-year syndicated senior credit
facility, of which CDN$50.0 million was used for the transaction and CDN$18.5
million was used for general working capital and operating purposes. The
company refinanced the CDN$22.8 million remaining on the 3-year fixed-term
acquisition loan used for the Diamond Wireless acquisition into a 5-year
syndicated senior credit facility and increased its operating facility from
CDN$10.0 million to CDN$15.0 million.
Unaudited AMT Group financial overview follows.
|AMT Group |12-months ended|
| (in millions of Australian Dollars) | June 30, 2012|
|Sales | $161.9 |
|Income before amortization, finance income and| |
|expenses, | |
|non-recurring items, and taxes | $18.5|
GLENTEL (TSX: GLN) is the largest independent multi-carrier mobile phone
retailer in Canada and a leading provider of innovative and reliable
telecommunications services and solutions in North America. Founded in 1963
and headquartered in Burnaby, BC, Canada, GLENTEL comprises four operating
divisions - Retail Canada, Retail U.S., Retail Australia and Business - that
service thousands of consumers and commercial communications customers. The
company operates over 750 stores with more than 330 locations in Canada
located nationally in retail malls, Costco Wholesale stores, and business
centres; more than 210 retail locations in the United States; and more than
210 retail locations in Australia. GLENTEL offers a choice of network carrier
and wireless device or mobile phone to Canadian and Australian consumers and
offers the family of wireless products and services of Verizon Wireless as one
of Verizon Wireless' select six National Premium Retailers in the United
States. GLENTEL operates its business under the trading names Glentel
Wireless, WIRELESSWAVE, WAVE SANS FIL, Tbooth wireless, la cabine T sans fil,
WIRELESS etc., WAVE SANS FIL etc., Mac Station, Diamond Wireless - a Verizon
National Premium Retailer in the U.S., and Allphones.
Statements in this release relating to matters that are not historical fact
are forward-looking statements based on current expectations, forecasts and
assumptions that involve risks and uncertainties that could cause actual
outcomes and results to differ materially. Factors that could cause or
contribute to such differences include, but are not limited to, general
economic conditions, changes in technology, reliance on third-party
manufacturing, managing rapid growth, limited intellectual property
protection, and other risks and uncertainties described in GLENTEL's public
filings with securities regulatory authorities.
NO STOCK EXCHANGE, SECURITIES COMMISSION, OR OTHER REGULATORY AUTHORITY HAS
APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.
For a copy of GLENTEL's annual report or for additional information visit
www.glentel.com or www.sedar.com.
Investor Relations Contact
Jas Boparai, Chief Financial Officer GLENTEL Inc. 604.415.6500
Lois Grierson GLENTEL Inc. 604.415.6500 email@example.com
SOURCE: Glentel Inc.
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