Regional operator Cable & Wireless Communications (CWC) announced today that it has signed agreements with the Bahamian government to acquire a 51% stake in state-owned Bahamas Telecommunications Company (BTC).
CWC will acquire the interest for…
Regional operator Cable & Wireless Communications (CWC) announced today that it has signed agreements with the Bahamian government to acquire a 51% stake in state-owned Bahamas Telecommunications Company (BTC).
CWC will acquire the interest for US$210m.
It also said in its announcement that the liberalisation of the Bahamian mobile market will not take place earlier than three years after the privatisation of BTC.
This means that BTC will continue to have a monopoly over mobile services in the Bahamas until 2014. This measure has been criticised by rival telcos in the Bahamas.
CWC also said that a workforce restructuring programme would take place on a voluntary basis, which is planned to come into force in the first year of operation.
A CWC spokesperson said that much of the work on the deal was done in-house, but it had used Slaughter & May for legal advice, while KPMG was consulted for due diligence.
CWC entered into a MoU with the government in early December to acquire the stake. Since then, there have been protests from unions against the acquisition.
The president of the Bahamas Communications and Public Managers Union (BCPMU), William Carroll, told TelecomFinance in January that the sale should be stopped “at all cost”.
Carroll said that CWC was known for poor employee and union relations throughout the Caribbean and had not deployed the latest technology in 90% of its Caribbean operations.
CWC said that the deal is still subject to parliamentary and regulatory approval. It expects to close the deal in April 2011.
