On May 2nd 2017, TSTT entered into a Share Purchase Agreement (SPA) with Massy Communications Ltd. (MCL) to purchase 100% of its shareholding. The completion of the sale was subject to regulatory approvals which TSTT received on July 26th 2017.
As with agreements such as these, it was expected that the completion will be subject to final reviews and negotiations. The final review was completed and TSTT successfully completed the acquisition of 100% shareholding of Massy Communications Ltd. on July 31st 2017.
The SPA signed on May 2nd 2017 expired on May 31st , and had to be extended on terms and conditions mutually accepted by all parties. After final negotiations, both parties agreed to a purchase price of $215M.
Massy Communications Ltd. was a subsidiary of Massy Holdings, a publicly traded company. MCL is organised into Retail and Enterprise Business Segments.
The Retail Business includes…
- 900Km of Fibre Optic (FTTH) infrastructure already deployed
- 34,000 Homes Passed, ready for sales
- 6,000 fibre to the home customers
- Fully deployed Operational and Business Support Systems
- Other assets including inventory and subsea capacity valued in excess of $75M.
The Enterprise Business includes:
- Long distance termination for international carriers
- 50 plus corporate customers receiving Data circuits
This acquisition brings together the synergies of both companies in a manner that benefits them both, the telecommunications industry and the people of Trinidad & Tobago. Given that TSTT had intended and secured financing to build a fiber plant in areas where Massy had already deployed a robust network, TSTT now has the benefit of consolidating both networks and infrastructures.
This will result in significant foreign exchange savings to TSTT and Trinidad and Tobago, and removes the inefficiency of redundant infrastructure build. This acquisition also accelerates TSTT’s Board-approved strategic intention in relation to its broadband strategy and strengthens its competitive position. This is the culmination of many months of work, exploration and determination.
The plan is to develop a comprehensive working relationship with Massy in general, where two local companies will use their collective economies, expertise and reach to the benefit of the country and all related stakeholders.
TSTT is very pleased with the completion of the MCL acquisition, as it is very much aligned with the Company’s strategic plan for inorganic growth, through mergers and acquisitions, and serves as an enabler in TSTT becoming an agile broadband communications company. MCL was purchased as a “going concern” and as such, will be separately operated.