Ireland-based mobile operator Digicel is “seriously interested” in buying a stake in state-owned incumbent Belize Telemedia, its executive chairman Nestor Vasquez has told local newspaper Amandala.
Belize Telemedia is preparing to sell shares next month,…
Ireland-based mobile operator Digicel is “seriously interested” in buying a stake in state-owned incumbent Belize Telemedia, its executive chairman Nestor Vasquez has told local newspaper Amandala.
Belize Telemedia is preparing to sell shares next month, and according to Vasquez, the two companies have signed a non-disclosure agreement and are discussing the terms of an imminent deal. He also said he has told Digicel that a controlling stake is not up for grabs.
Vasquez also claimed that a Mexican group has approached the Government of Belize expressing an interest in the company, adding that discussions with Digicel were exclusive.
Belize Telemedia has been in and out of private and public ownership several times in its chequered history. Most recently in August 2009, the government purchased 94% of the company’s equity – the rest being held by 908 small shareholders. The British Caribbean Bank sought to wind up the company in December 2009, accusing it of neglecting to repay US$25.17m loan, to which Belize Telemedia responded claiming that it considered the loan, taken out by the previous board of directors of Telemedia, to be unlawful and therefore void. Earlier this year the BCB claims were rejected by Belize’s Attorney General. BCB appealed and the process is still ongoing.
Other possible bidders are the Belize Communication Workers Union, who wanted to buy 23% of the company, increasing its stake from 1.5% and former shareholder the Belize Social Security Board, according to Vasquez. He also said that the government was seeking to limit foreign ownership to 25% and fix a minimum 45% of profits to be paid out as dividends annually.
Digicel declined to comment, while Nestor Vasquez was not available for comment at the time of going to press.
