Executive chairman of Belize Telemedia Limited (BTL), Nestor Vasquez, told Amandala Wednesday that the company is finalizing the prospectus for the sale of shares in the company, which should go to press within the next couple of weeks and be publicly released in October.
Vasquez confirmed reports to Amandala that the Irish company, Digicel, which has its central operations in Jamaica with 11 million customers across 26 countries in the Caribbean and Central America and 6 in the Pacific, has expressed serious interest in purchasing BTL shares. The Digicel group is chaired by its founder, Denis O'Brien, said to be one of Ireland's leading entrepreneurs.
The BTL chairman told us that a Digicel team was given a tour at BTL last week, and they are in the process of exchanging information, under the terms of a non-disclosure agreement between the parties.
"They have been told very clearly in their visit that controlling interest is not available," said Vasquez.
During the 3-day visit at BTL, the Digicel reps also had a chance to look at the Telecommunications regulations and other documents.
Although a Mexican investor has also expressed interest separately to the Government of Belize, Vasquez said that BTL will not be engaging in negotiations with any other group, until they have seen it through with Digicel and until they make a decision whether they will buy or not. He expects a proposal from Digicel shortly.
The next major interested buyer is the union representing the workers of BTL, the Belize Communications Workers Union (BCWU), which had 5 years ago initiated a move to acquire a sizeable block of shares in the company. Those shares never made it into their hands but remained in the hands of a management controlled company and trust up until the Barrow administration acquired those shares, totaling 23%, in the nationalization of August 2009. Vasquez said that the ownership of shares by the union would be "a healthy situation."
"Originally, in the 80's, the concept was that there would only be two types of permitted persons: government and an employee share scheme." This would protect the company, said Vasquez. "No government can shake up company," he added.
With 25% owned by staff (management and union) and 10,000 Belizean shareholders, for example, it is the only protection the company could have from abuses, he noted.
Currently, the union only has about 1.5 to 2% or just over half a million, but it is not enough, he furthermore commented.
The Belize Social Security Board (BSSB) is also looking at re-acquiring shares in BTL. At the time of the resale in 2004, the then administration led by ex-prime minister Said Musa, sold off the BSSB's shares to American Jeff Prosser, who later lost them to the Michael Ashcroft group. With the 2009 re-nationalization, they are back in the Government's hands.
Vasquez, also the chairman of the BSSB's investment committee, said that the SSB is also looking at whether it will purchase shares in BTL.
The BSSB's Investment Department, said Vasquez, has been doing its due diligence and will make a report soon to the investment committee, which should make a recommendation to the board of the SSB, he explained.
The prospectus should include a 5-year financial forecast from 2010 to 2015. Vasquez said he could not tell us yet what the value of the shares would be, as the financials are still being finalized and the Government would be the one to determine what the sale price would be.
At the next AGM, due in November 2010, a new set of Articles and Memorandum of Association would be tabled for approval, Vasquez told us.
According to the chairman, BTL's board has not yet decided if the limitation on shareholdings would remain at 25%; however, the plan is to fix a minimum of 45% of profits to be paid out in dividends every year.
It could be 2011 before the sale of shares is closed, he indicated.
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