BCCI President concedes BTL’s proposed acquisition of Smart may be a done deal

Has the Belize Chamber of Commerce and Industry thrown in the towel when it comes to BTL’s proposed acquisition of Speednet Communications Limited? Chamber President Giacomo Sanchez appeared somewhat resigned today, conceding that the proposed eighty-million-dollar purchase of the company operating under the Smart brand is now more than likely a done deal.  His comments follow two significant developments. On Friday, the Social Security Board, BTL’s second-largest shareholder, reportedly took a no-objection position on the transaction. Then, yesterday, BTL’s Board of Directors approved the proposed purchase of one hundred percent of Speednet’s issued shares.  Sanchez says those decisions suggest that the acquisition is now likely to move ahead despite the concerns raised by the Chamber and other social partners.

Giacomo Sanchez, BCCI President: “Overall, I believe what will occur, or what has occurred, is that the transaction essentially is a foregone conclusion because that vote yesterday essentially tells the public and tells everyone that this deal is going through one way or the other. And who, from a PUC standpoint, it’s just a matter of timing as to when they give some sort of indication that it would have been approved. From a BTL standpoint, yes, it’s a done deal. I don’t think this will go back or be reversed. It’s just the nature of things. As you will appreciate, the BCCI isn’t against any type of merger in business and interfering in private matters but this is significantly of a public nature given that the government has a great deal of interest and of course Social Security is participation as an equity holder in BTL. And if you look at the…..over the past few months the issue came up and we addressed it at the time and then there were consultations. Coming out of those consultations we were still not satisfied that we’re getting value for money. We’re still not satisfied that the regulatory environment is there to give any comfort to consumers post acquisition by BTL of this Smart Speednet enterprise. What we’ve done is essentially put the cart before the hearts. We should have put in the proper legislative safeguards and guardrails and then we can see the proceeding of a fluid transaction. However, there was a rush and I honestly don’t know why there was a rush in concluding, because to me it was more a seller driven transaction rather than a buyer driven transaction which is not good for the people of Belize.” 

The Chamber has called for greater transparency, access to Speednet’s audited financial statements and stronger assurances that the purchase represents good value for the Belizean public. However, Sanchez indicated that the Chamber has limited options remaining.  While trade union representatives and members of the Opposition have taken their concerns directly to BTL’s headquarters, Sanchez says the Chamber is not an organization that would ordinarily mobilize its membership for street demonstrations.

Giacomo Sanchez, BCCI President: “We would love to be in that position where we just are out there and in the faces of opposing the transaction. Unfortunately, that’s not the nature of how our constituency operates. So we still need to go back to our constituents to get a feel for their feeling because oftentimes when you’re dealing with public funds, it’s so far removed from our own individual pockets that people kind of lose interest. We as a chamber need to continue advocate to ensure that PUC put in the proper regulations. I mean, it’s post-transaction, but it’s a fight that we need to continue fighting with the PUC to ensure that there’s sufficient guardrails so that our consumers in Belize, from a telecommunications standpoint, aren’t unfairly treated the way we have been in the past. The public should push back. However there’s only a few people in the know that will feel the way we feel. However, I mean just about 90% of Belizeans could care less. That’s just the nature of how business works in Belize, especially when it comes to complicated matters of legality and regulations.”

BTL’s Board approval does not yet amount to final execution of the purchase. According to the company, the decision remains subject to continued due diligence and the negotiation of representations, warranties and other protections. A definitive Share Purchase Agreement must be returned to the Board for a separate review and final approval before it is signed.