ATH regional acquisitions
3 July, 2017, 12:00 am
WITH their solid financial performance last year, local telecommunication giant Amalgamated Telecom Holdings (ATH) remains optimistic of a continued positive and improved results in the future.
To add to the momentum, the Fiji National Provident Fund majority owned ATH last year had made significant regional business acquisitions such as Bluesky Group and Telecom Vanuatu.
According to the financial statements released by ATH last week, the company on September 23, 2016 had entered into a Sale and Purchase Deed (SPD) with Spanish company Amper SA and Elandia International Inc. of the US.
This deal included the primary transaction for ATH’s acquisition of 100 per cent of the issued share capital in AST Telecom LLC of USA and 100 per cent of the issued share capital in eLandia Technologies Inc. of USA for a purchase price of circa $US79 million.
The principal activities of these entities are telecommunication services in Samoa, Cook Islands, New Zealand and American Samoa, through a number of subsidiary entities in USA and these other countries (collectively referred as Bluesky Group).
The execution of the sale was subject to obtaining appropriate consents for the (direct or indirect) change of control of various licences and permits and foreign investment approvals, waivers or non-objections from respective government and regulatory authorities.
According to ATH, the holding company is still in the process of acquiring Bluesky Group interest in the South Pacific from Amper SA.
The first two payments for the transaction had been paid as refundable deposits at $US30 million ($F61m) while the final payment and settlement is awaiting certain consents from the Federal Communication Commission of US and approvals and waivers from the Committee of Foreign Investments in the United States (CFIUS).
As at March 31, 2017, ATH did not have control of Bluesky Group and therefore the payments have been recognised as ‘Refundable Deposits’ in the financial statements.