SSB Reportedly Clears Key Hurdle for BTL’s Smart Acquisition

The proposed acquisition of Speednet Communications by Belize Telemedia Limited appears to have cleared another important hurdle as the Social Security Board has given the greenlight for the buyout.  However, one source indicates that in Friday’s SSB meeting, a vote was not recorded, but rather, there was a no objection route which is reportedly non-binding.  The general consensus or understanding, as we were informed, is that the SSB will not stand in the way of the acquisition.  It is very important to note that the decision has not been officially confirmed by anyone in authority at the SSB, and the Board has not issued a press release explaining its position.  That silence is notable because SSB is a major shareholder in BTL and has several directors on the telecommunications company’s board. The SSB owns 34.3 percent of BTL’s ordinary shares. The Government owns 49.3 percent of the ordinary shares and all of the company’s preference shares.  The reported no-objection comes after months of deliberations, requests for further information and public debate over the proposed acquisition. That process also included the resignation of Chandra Nisbet Cansino, who previously chaired the SSB board.  BTL has presented the acquisition as an opportunity to create a stronger and more efficient national telecommunications company. It argues that combining the two networks could reduce the cost of maintaining duplicate infrastructure and allow more resources to be directed toward better coverage, new technology and improved service.  The company also believes the transaction could strengthen its financial position and generate better returns for shareholders, including the Social Security Board. It is important to note that SSB’s reported position does not mean the acquisition is complete. The transaction must still go through the necessary regulatory process, including scrutiny by the Public Utilities Commission.  The PUC has already declared BTL dominant in several areas of the telecommunications market. That finding gives the regulator greater authority to impose conditions relating to pricing, transparency, infrastructure access and consumer protection.