Cable & Wireless Communications (CWC) has confirmed that it has signed agreements with the government of the Commonwealth of The Bahamas to buy a 51% interest in The Bahamas Telecommunications Company (BTC). BTC is the island nation’s dominant telecoms provider, with a monopoly on the provision of wireless services and a leading position in the fixed line and broadband arena. The company will form a key plank of CWC’s Caribbean business, which now operates under the LIME brand. CWC has developed a business and restructuring plan for BTC aimed at improving and expanding its services and increasing its customer focus.
Under the terms of the sale and purchase agreement CWC will acquire 51% of the shares in BTC, including management control of the business, for USD210 million. The purchase price is based on BTC having net cash of BSD15 million (USD15 million) on closing, and is subject to standard post-completion adjustments for actual net cash and working capital balances at closing. A workforce restructuring programme after privatisation will be undertaken on a voluntary basis and is planned to be implemented within the first year after completion. The acquisition will be funded from CWC’s existing cash balances and debt facilities. CWC expects to be able to close the transaction around the beginning of April.