ATH BINDING OFFER ACCEPTED
By Ampher SA for Pacific assets
Amalgamated Telecom Holdings Limited has announced that Amper SA (Amper) has accepted its Binding Offer for the sale of all of Amper’s interests in the South Pacific. Amper is a Spain-based company primarily engaged in the telecommunications sector.
It has various telecoms interests in the Pacific, including AST Telecom (American Samoa) and BlueSky Samoa (Samoa) – which jointly control a 60 per cent stake in BlueSky Cook Islands (formerly Telecom Cook Islands). Under the key terms of the offer, ATH will acquire a controlling interest in the South Pacific units for a cash consideration of US$79,155,772 (FJ$163 million). ATH chairman, Ajith Kodagoda, said they envisage the investment to be funded from a mix of debt and equity. Amper will present and recommend the offer to their shareholders at an upcoming special general meeting.
If necessary, it will seek shareholder ratification of ATH Offer for the acquisition of the Group’s subsidiaries in the South Pacific.
The transaction will be subject to requisite regulatory approvals and consents being obtained. It is estimated that the parties will execute the definitive agreement during September.
What this will mean?
Mr Kodagoda explained this investment is fully consistent and aligned to ATH’s stated strategy of regional expansion as it will provide ATH market access and service delivery in four regional markets. “This investment also presents ATH a tremendous opportunity to play a key role in improving regional connectivity and delivering modern innovative services,” he said.
“This would be across the Pacific for the benefit on end users in all the markets and countries that we participate in.”
Getting a return
Such a big investment will no doubt require equally good returns which ATH is confident of getting. Mr Kodagoda said the current operations within the acquisition are all fundamentally sound and recording good financial performance, so ATH is quietly confident. “Moreover, ATH believes that extending operations on a regional basis will further unlock economies of scale and scope,” he said.
“Lastly, there are opportunities towards building on much-needed regional and international connectivity as a pathway to broadband networks with lower costs, improved speed, quality and resilience of services.” Mr Kodagoda said the obvious next steps are the transitions and integrations required to ensure service continuity considering further improvements to the performance of the group companies.
Mr Kodagoda explained this investment is fully consistent and aligned to ATH’s stated strategy of regional expansion as it will provide ATH market access and service delivery in four regional markets.