KeyTech No Longer Subject To 60/40 Rule

September 14, 2012

In a filing to the Bermuda Stock Exchange [BSX] KeyTech Limited confirmed that, effective 14 September, 2012, the company is no longer subject to the 60/40 rule.

The Companies Act was recently amended to allow for companies fitting certain criteria to apply for Government’s permission to have over 40% of their shares foreign owned. In a filing to the BSX in August 2012, KeyTech Limited gave notice of the Company’s intent to seek relief from the 60/40 rule

The letter stated: “Further to our letter to you of August 23rd, 2012, enclosing a copy of our notification letter to the Minister of Business Development and Tourism pursuant to Section 113(8) of the Companies Act 1981 (the “Act”) of the same date, please be advised that effective September 14th, 2012, the Company shall be deemed to be “Bermudian” pursuant to Section 113(cd)(i) of the Act.

“Further, the Company, as a company to which Section 114(1)(e) of the Act applies, shall thereby no longer be subject to the requirements of Section 118 of the Act.”

KeyTech subsidiaries include The Bermuda Telephone Company Limited, Logic Communications Ltd., Bermuda Yellow Pages Limited and WestTel Limited.

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Comments (9)

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  1. Eastern says:

    The only problem that I have with the relaxing of the 60/40 rule is situations like the fact that HSBC now owns the former Bank of Bermuda outright; with the main effect being that Bermudians have been let go and their jobs have been outsourced overseas.

    The question now is will more Bermudians loose they’re jods as a result and how long will it be before more local businesses wil be owned by foreign entities that will care less about Bermudians and more about the bottom line at the expense of Bermudian staff?

    • pebblebeach says:

      In business its always about the bottom line regardless, unless you’re in Government….

  2. really... says:

    so now Logic has access to foreign investment and their competition such as North Rock does not….how does that work?
    I understand the 60/40 change for publicly traded companies and really don’t have an issue; we need foreign investment. I’m just concerned how this is going to affect locally owned competitors.

  3. Future says:

    There is a small time delay between when the chain is pulled and hearing the water as it swirls down the toilet. The chain just got pulled….