Shareholders Vote For KeyTech & CellOne Deal
This morning [Oct 20] shareholders voted in favour of exchanging a 51% interest in KeyTech for ATN’s shares in CellOne and approximately $42 million in cash, and once complete, the transaction will bring together CellOne’s mobile services and network with Logic’s [CableVision] brand for broadband Internet, telephone and video services.
Lloyd Fray, CEO of KeyTech Limited, said: “At a Special General Meeting held this morning, we are pleased that shareholders overwhelmingly voted in favour of exchanging a 51 per cent interest in KeyTech for ATN’s shares in CellOne and approximately $42 million in cash.
“We are waiting for approval from the Bermuda and Cayman regulators, Federal Communications Commission as well as the consent of the Bermuda Stock Exchange on certain transaction matters.
“Once complete, the transaction will bring together CellOne’s premier mobile services and network with Logic’s [CableVision] brand for broadband Internet, telephone and video services.”
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Digicel and Logic/CellOne. The new doupoly. I thought the RA was supposed to foster increased competition. All that seems to have happened is a string of M&As over the past 4 years. Without a viable third competitor, prices will just hold with only marginal service improvements.
Due to a series of missteps, KeyTech was in real trouble. This deal hurts for shareholders but at least gives them a fighting chance against Digicel. ATN are an experienced niche player; let’s hope they can bring change to Bermuda rather than the bitter high cost/low service that has been our rut.