Canadian wireless operator TeraGo is looking for more US investment in light of a proposed change to foreign ownership rules, according to its CEO Bryan Boyd.
TeraGo is at the current threshold of 46.7% direct and indirect investment from abroad and…
Canadian wireless operator TeraGo is looking for more US investment in light of a proposed change to foreign ownership rules, according to its CEO Bryan Boyd.
TeraGo is at the current threshold of 46.7% direct and indirect investment from abroad and wants more capital to invest in infrastructure, according to Boyd in an interview with The Globe and Mail. He also said the change would enable the telco to lower its cost of capital.
The amendment to the telecommunications act, part of the federal budget bill, will mean companies with 10% or less market share by revenue will have restrictions limiting foreign ownership lifted.
At the moment non-Canadians are prohibited from owning any more than 20% of the voting shares in telcos and are limited to indirect control of 46.7%.
Looking ahead, Boyd was quoted as saying that while in the short term TeraGo was just looking for investment, joint ventures or a sale were possible in the future.
Once the bill is ratified, expected later this summer, the telco will likely hold investor road shows in the US before looking further afield for equity injections, the report says.
TeraGo has a market cap of C$78.2m (US$76.5m) and recorded revenues of C$44.9m (US$43.9m) in 2011.
