Public takeover consultation of Digicel closes in Bermuda
/ Our Today
administrator
Durrant Pate/Contributor
The Bermudian Regulatory Authority’s public consultation of the Digicel Group takeover has ended.
The general public had until January 2 to submit comment on bondholders’ takeover of the regional telecoms giant, which was effected last summer. The takeover is now being considered by the Regulatory Authority of Bermuda after public input to the consultation ended.
Written comments were to be submitted by 11.59 pm last Tuesday, under the Regulatory Authority Act on the global Digicel ownership change, first agreed in March last year. The Regulatory Authority sought public input regarding Digicel Bermuda’s change of control notification request, involving the new investor/debtholders having indirect control of Digicel Bermuda.
Regulatory authority issues notice
Consultatory notice on the Regulatory Authority website was given on December 18 as the authority indicated tentative plans to issue a final report, decision and order, and general determination by the end of the month. Under Bermuda’s laws, change in ownership control of a sectoral provider requires public consultation and Regulatory Authority approval.
Digicel Bermuda’s ownership change comes from the global restructuring agreement of the Jamaican headquartered telecoms group in June. The company, which also operates in 25 Caribbean and Central American countries, entered into a restructuring agreement, where certain existing debtholders will convert some of the Digicel Group’s existing debt into equity.
Certain of the group’s credit arrangements will be amended and replaced with a restructured set of debt facilities. The company has told the Regulatory Authority that the change will improve its financial stability, allowing investment in network, infrastructure, technology upgrades and an expansion of services.
Change to bring value to Digicel Bermuda
The Regulatory Authority said it has been told that the change “will underpin their viability in the Bermuda sector“ and assist Digicel Bermuda in retaining and growing as a critical competitor in the market.
According to the consultation document, “the Digicel Group also stated that there is no planned reduction of staff due to the restructuring transaction. They further stated that management will retain control of decisions related to employees.
Moreover, they stated that they are committed to the retention of critical staff by means of appropriate incentives.”
Digicel Bermuda controls two of 20 integrated communications operating licences.
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