BELMOPAN, Belize - Belize's government says it does not support the proposed acquisition of Speednet Communications Limited by the Belize Telemedia Limited (BTL).
“Cabinet thanks all those who engaged in good faith and constructive dialogue on this issue and assures the Belizean people that it remains determined to always listen respectfully to their voices and act in the national interest,” the government said following a Cabinet meeting.
“After careful deliberation, it is Cabinet’s informed position that it does not support the proposed acquisition.”
Last week Tuesday, BTL, whose majority shares are owned by the government, said that its board of directors had approved the proposed purchase “of 100 per cent of the issued share capital of Speednet, subject to the satisfactory completion of continued due diligence and the negotiation of appropriate representations, warranties and other contractual protections for BTL as the buyer’.
“Once negotiations advance to the definitive agreement stage, the Share Purchase Agreement will be submitted to the Board for separate review and final approval before execution,” BTL said.
It said that the proposed acquisition represents a “strategic investment in Belize’s digital future” and it is intended to reduce “unnecessary duplication of telecommunications infrastructure, strengthen network reliability, accelerate digital inclusion and redirect resources toward modern technological modernization and connectivity for underserved and unserved communities”.
BTL said importantly the transaction will allow borrowing by BTL and “will not require additional investment from the Social Security Board”.
Earlier this month, the Belize Chamber of Commerce and Industry (BCCI) “publicly” reiterated its firm opposition to the proposed acquisition of Speednet Communications Limited by BTL in its current form.
Speednet Communications Limited, the provider operating the Smart brand in Belize, is primarily owned by the Waterloo Group Charitable Trust holding a 77.5 per cent stake with other minority shareholders including relatives of Prime Minister John Briceño.
The BCCI said that it is standing by its position and “that a second, fully independent valuation supported by no less than five years of audited financial statements from Speednet is a prerequisite for fair market evaluation”.
The private sector group said that Belize currently lacks a “comprehensive and merger control” legislation framework capable of regulating telecommunications consolidation.
“Proceedings with a merger that effectively creates a state-based telecom monopoly without prior legislative guardrails poses systematic risks to the national economy”.
Opposition Leader, Tracy Taegar-Panton said that the main opposition United Democratic Party (UDP) is “deeply disturbed” by the BTL decision saying that the board approved the transaction despite repeated calls from national stakeholders for greater transparency, comprehensive due diligence and full disclosure of the financial, legal, regulatory and governance implications of the deal.
She said that the decision ignores concerns raised by the BCCI, the National Trade Union Congress of Belize (NTUCB) as well as members of the public over the proposed acquisition.
NTUCB president Ella Waight says the union body has consistently placed its concerns on record, but those concerns have not influenced the process and that BTL has shown disregard for the unions’ position on a major national issue.
Earlier this week, Cabinet held talks with the Chamber, NTUCB, the BTL as well as the Social Security Board and according to the Cabinet statement the government “has a duty and obligation to responsibly review all available data and relevant information.
“It must also respectfully consider all views and concerns expressed by its members, social partners, including the media, and the public,” the statement added.
