The Bahamas Weekly writes that the Bahamian Government and Cable & Wireless Communications (CWC) have completed the controversial ‘2% deal’, whereby CWC has transferred ownership of just under 2% of the shares in Bahamas Telecommunications Company (BTC) to a charitable trust set up by the government of Bahamas – the BTC Foundation. As part of his election campaign in 2012, PM Perry Christie pledged to return BTC to Bahamian ownership, after the previous administration sold a 51% stake in the fixed line incumbent and sole provider of wireless services in the archipelago to the UK’s CWC for USD210 million. To that end, the government has been involved in negotiations with CWC to reclaim majority ownership of the provider and in January 2014, the PM announced that an agreement had been reached. Under the now-completed deal, CWC transferred 5,093,200 shares in BTC to the new foundation, which will invest in Bahamian interests. The nearly-2% stake is not entitled to any voting rights, leaving CWC with majority voting rights as the largest overall shareholder and allowing CWC to consolidate BTC’s financial results. Further, CWC will also retain management and board control. The deal has been roundly criticised for wasting money on a ‘face-saving’ measure for the Christie administration, the end result changing little for CWC or BTC, but allowing the government to claim that it has met its election promises. Speculation that the government would consider extending BTC’s monopoly on wireless services in exchange for the 2% proved ungrounded, although the government has remained tight-lipped on the amount paid to CWC for the shares. Further, prolonged delays and the absence of any mention of the deal from CWC’s financial report led to accusations that the PM had lied about the agreement.
1 Aug '14
Money where my mouth is ...
I've expressed a positive view of this share previously and today I bought more.
31 Jul '14
Why is no one making an offer?
At this price I would have thought that CWC would make an attractive take over even without the ongoing restructuring. Healthy cash position and decent dividend. Disclosure: I own shares in CWC
I last bought in at around 45p and sold about 18 months later at 54p. With the divis on the way it was a healthy profit. I was reluctant to sell at the time but needed the money. I still think T/O is a real possibility but who knows when. I've only bought a small amt this time and aim to top up at intervals. I've set a stop loss at 40p and will renew that every month. I'm happy to give this 2 years and keep the divis as compensation. I have to admit I know very little about telecomms or the markets CWC operates in. My late father always had Cable and Wireless in his portfolio and he was a cautious investor. I've been in and out a few times in the last decade (even prior to the CW/CWC breakup) and have never lost money yet....of course , there's always a first time........
16 Jul '14
How old are you|? I only ask because of the last sentence of your last post! I happen to agree with all you say but am looking for short or medium term profit as time waits for no man! Do you have a time frame in mind?
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