Prime Minister Dean Barrow indicated to Amandala today that Cable & Wireless, a leading international telecommunications company of the UK, had, via teleconference on November 19, discussed the possibility with Government representatives of purchasing shares in Belize Telemedia Limited (BTL).
According to information published by BTL, in December 1987, Cable & Wireless had merged with the Belize Telecommunications Authority to form Belize Telecommunications Limited, which became Belize Telemedia Limited in 2007.
According to Prime Minister Barrow, Belizeans have so far subscribed to $300,000 worth of BTL shares. At $5 a share – that would amount to 60,000 shares. A total of 22 million shares (45% of the company) is open to the public for purchase.
The share offering was opened on October 15, 2010, though the National Assembly only approved the motion for the sale of shares this month.
Barrow also indicated that the Social Security Board is in the process of concluding a share purchase agreement.
Amandala readers will recall that SSB’s board had approved the purchase of about 10 million shares at roughly $50 million, which would give the SSB 20% of the company and two seats of its board of directors.
Digicel had expressed interest in purchasing roughly 40% of BTL’s shares, according to the Prime Minister. However, the company, said Barrow, has indicated that it prefers to wait until the conclusion of court cases filed challenging the nationalization of BTL. Barrow said that the government is “not prepared not to explore other options.”
He also indicated that information from the Embassy of Taiwan in Belize is that a company, partly owned by the Government of Taiwan and partly owned by private investors, is interested in purchasing shares in BTL.
Both Cable & Wireless and the Taiwan investors, said Barrow, may commence due diligence exercises shortly.
In related news, the Contractor General, Godwin Arzu, had prepared a public interest certificate for the sale of the shares on November 10, indicating that he has completed due diligence review and is satisfied that the sale of shares (46,845,513) to the public is (in his view) being done in the public interest.
Arzu said that he premised his declaration on assurances given to him that government has put in place adequate mechanisms and procedures to ensure that 51% of BTL remains in the hands of Belizeans.
Concerns were expressed in the Senate when it considered the motion for the sale of shares last week, that Arzu had made his declaration based on a mere undertaking from the government, but Arzu told us that he had spoken with government officials, such as Financial Secretary Joe Waight, and had reviewed the prospectus and other documentation on the ownership of the shares before arriving at his declaration.
Arzu also said that he made the declaration under the Finance and Audit (Reform) Act. He told us that the law requires that government seek National Assembly approval if it wants to sell an asset above the $2 million threshold.