WestStar and Cayman 27 sold to Logic
(CNS Business): Cable TV provider WestStar and its TV station Cayman 27 have been bought out by Bermuda-based KeyTech, the parent company of Logic. In an announcement Wednesday, the KeyTech Group of Companies revealed that its subsidiary, WestTel Limited (Logic Cayman) has acquired the Cayman-based company, British Overseas Territory Cable & Telecommunications (BOTCAT), financed through debt and equity. KeyTech will take on $68.9 million in debt and issue 2,424,242 KeyTech shares to BOTCAT. It is issuing the shares out of its authorised share capital as of the closing date of the transaction.
According to Cayman 27, the purchase agreement has been completed and consent has been granted by the Information Communications and Technology Authority (ICTA). “For now, it will be business as usual for both companies,†the TV station said in its report.
BOTCAT owns WestStar TV Limited in Cayman and an interest in CableVision Holding Ltd. in Bermuda. Following completion of the acquisition, KeyTech will have a controlling interest in Bermuda CableVision Limited and a 100 per cent interest in WestStar TV.
In addition, KeyTech has simultaneously sold 100 per cent of its interest in The Bermuda Telephone Company Limited (BTC) to Barrie OpCo Limited, for $30 million, $25 million in cash and $5 million in deferred debt. The cash proceeds will be used to retire Keytech’s existing debt.
While the disposal of BTC is below book value, the firm said, the combined impact of both transactions is transformative for the KeyTech Group of Companies and continues to position the company as the leading, full-service telecommunications provider in both the Bermuda and Cayman markets. “Moreover, it ensures a sustainable model for delivering scalable telecommunications and multi-media solutions to business and consumers and positions the group to maximize shareholder value over time,†KeyTech said in a release.
KeyTech CEO Lloyd Fray said, “The sale of BTC and the acquisition of BOTCAT are transformational transactions for KeyTech. We will now have the ability to offer superior triple-play services, which are telephone, internet with access, and television, in both Bermuda and Cayman. Bermuda CableVision has a hybrid coaxial-fiber network across the island that can be expanded to meet the growth of consumer high speed broadband consumption and offer superior subscription television services with its Internet Protocol TV (IPTV) platform.
“Likewise, in Cayman this acquisition will position Logic as the largest provider of subscription television while they continue to build their fiber to the home network and convert customers to high speed broadband services and IPTV. In both jurisdictions, Logic has built a reputable corporate data business that offers robust and reliable data solutions for the corporate market.â€
Category: Local Business, Media, Technology
