ATH in Talks to Acquire Bluesky Samoa
Possible investment part of regional expansion for the locally-owned company
Amalgamated Telecom Holdings (ATH) has entered into exclusive negotiations with Amper SA to acquire Amper’s equity interest in its businesses in the South Pacific. Amper SA is a Spain-based company primarily engaged in the telecommunications sector. It has countersigned ATH’s non-binding Letter of Intent which conveys ATH’s intent for the acquisition of Bluesky Samoa. ATH chairman, Ajith Kodagoda, confirming this, said the acquisition would be good news for ATH and Fiji. He said the Spain-based Amper SA feels it is too far for them to concentrate on the business in the South Pacific.
The parties anticipate this deal to be finalised in approximately three months, subject to all necessary regulatory approvals and consents being secured. ATH’s offer is based on an Enterprise Value to EBITDA multiple of 6x subject to the outcomes of confirmatory due diligence, the usual adjustments for liabilities and requisite regulatory approvals, licenses and authorisations. This is part of ATH’s plan for regional expansion which started off the past year when ATH acquired Telecom Services Kiribati Limited. The company has since been renamed to Amalgamated Telecom Holdings Kiribati Limited. Meanwhile, in a statement issued by the Bluesky Samoa’s Chief Commercial Officer, Sanjeewa Perera, it confirmed that Amper and ATH have started the negotiations. “The strong performance of Bluesky Pacific Group operations in American Samoa, Samoa, New Zealand and Cook Islands has attracted the attention of key telecom operators in the region such as ATH,” he said. “These discussions have now commenced. A potential acquisition is subject to agreement by the parties on price, terms of acquisition and regulatory approvals.
“Bluesky fully supports its parent company’s decision to explore this opportunity. “Bluesky is involved in the discussions to ensure the best commercial decision is made not only for Amper SA and Bluesky Pacific Group operations, but also for its existing local investors, customers and community.”
About Bluesky Samoa
Bluesky Samoa is part of the Bluesky Pacific Group, which is regional telecommunications group, with its companies providing Fixed Line, Mobile, Broadband and I.P.T.V services to consumers in American Samoa, Samoa, New Zealand and Cook Islands. Bluesky Communications was the first company to launch in American Samoa in July 1999. From its beginnings as a mobile phone company, Bluesky then expanded to also being an internet service provider and then acquiring the local cable TV operator in American Samoa in 2009. Since then Bluesky and the services offered has grown to what it is today. It expanded into Samoa in March 2011 by acquisition of SamoaTel, Cook Islands and New Zealand in early 2015. Bluesky operates the only submarine fibre optic cable connecting Samoa and American Samoa to Hawaii.