TORONTO, May 24, 2013 /CNW/ – Accelero Capital Holdings S.ά r.l. Group
(“Accelero”) today announced it has signed a binding agreement with
Manitoba Telecom Services Inc. (TSX: MBT) to acquire the Allstream
business (“Allstream” or the “Company”) in a transaction that values
Allstream at $520 million, subject to certain customary adjustments,
including assumed debt obligations and normalized working capital, as
well as certain pension related obligations. The transaction is
expected to close in the second half of 2013, subject to receipt of
applicable regulatory approvals.

Allstream is an enterprise-focused communications solutions provider in
Canada. The Company has approximately 30,000 route kilometers of fibre
network coverage across Canada, serving more than 50,000 businesses.
Allstream is headquartered in Toronto, Canada and employs over 2,000
personnel. 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 in Canada and around the globe. Naguib Sawiris, Accelero’s
Non-Executive Chairman and Co-Founder, is a renowned telecom
entrepreneur who has overseen more than $1 billion of investment in the
Canadian telecommunications market, contributing to the emergence of
independent wireless competition in Canada.

Under Accelero’s ownership, Allstream expects to strengthen its position
as a leading independent Canadian telecommunications solutions provider
to the enterprise market, and continue to provide high quality products
and services. Accelero will work with Allstream’s senior management
team to accelerate the Company’s ambitious business plan by providing
access to new capital, talent and opportunities. This plan includes a
commitment to significant ongoing investment in Allstream as part of
its vision to build on and accelerate its momentum in the Canadian
telecommunications market. Allstream’s head office will remain in
Toronto.

Naguib Sawiris commented: “This investment reflects Accelero’s long-term
commitment to the Canadian telecommunications market, and our belief in
the opportunity that exists to provide capital to enhance the
competitive landscape in Canada. Allstream is the leading competitor to
the incumbents in the Canadian enterprise market, and a fast-growing
player in the IP space with an advanced coast-to-coast fiber network.”

Ossama Bessada, Managing Partner and Co-Founder of Accelero, said:
“Allstream fits within Accelero’s strategy to invest in attractive
companies where our capital as well as our strategic operational
support can create an opportunity for value creation. We are committed
to working closely with current management to invest in the business
and drive enhanced competition in the Canadian telecommunications
marketplace through innovation and superior customer service in the
future.”

Commenting on the acquisition, Dean Prevost, President of Allstream,
said, “We are delighted to work with Accelero to realize Allstream’s
full potential and deliver on our core mission to provide world-class
products and services to Canada’s business community. I am confident
that with Accelero as a strategic shareholder, and with the benefits of
being a totally focused and privately held company, Allstream can build
on this momentum for the benefit of our customers, employees and the
competitiveness of the Canadian telecom sector.”

Transaction Details

In connection with the transaction, and subject to receipt of all
necessary approvals, MTS has agreed to retain the pension obligations,
and related pension plan assets, in respect of retirees and other
former employees of Allstream under Allstream’s current defined benefit
pension plans. Allstream will retain such plans in respect of current
employees. MTS has also agreed to reimburse Allstream for the solvency
funding payments that may become payable in respect of employees of
Allstream as they relate to pre-closing service.

The transaction is subject to approvals under the Investment Canada Act and by the Competition Bureau.

Advisors and Legal Counsel

BMO Capital Markets is acting as exclusive financial advisor and Torys
LLP is legal counsel to Accelero.

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

SOURCE Accelero Capital