Cartesian, Thomvest sell Public Mobile to Telus

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telecom tower 2_sqInvestment firms Cartesian Capital and Thomvest Seed Capital have exited Public Mobile, which has been sold to Canadian telecommunications major Telus.

The takeover of Public Mobile, which has 280,000 wireless customers in Ontario and Quebec, has yet to be approved by the Canadian Competition Bureau.

Canada’s industry minister James Moore said that the deal “does not materially change the spectrum concentration of incumbents in this country and therefore will not diminish competition in our wireless sector.”

Telus has previously tried to acquire smaller competitor Mobilicity, but the deal failed to secure the approval of Canadian regulators.

Earlier this month, private equity firm Birch Hill Equity Partners pulled out of an auction of Canadian wireless spectrum, which enabled it to hold takeover talks with other bidders.

The firm was expected to bid for controlling stakes in small wireless companies Wind Mobile and Mobilicity with financial backing from Rogers Communications.

Current competition regulations bar Canadian majors BCE, Rogers and Telus from buying the spectrum of Wind and Mobilicity, which are available for other bidders.

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