State-owned telecommunications company, TSTT has agreed to purchase Massy Communications for the sum of $255 million.
The announcement was made by TSTT's chairman Emile Elias at a news conference this afternoon.
Elias said TSTT has signed a Share Purchase Agreement to acquire Massy Communications.
The following is a statement by TSTT: "TSTT and Massy Communications Ltd., have entered into a Share Purchase Agreement (SPA), in which TSTT will purchase 100% shareholding of Massy Communications Ltd. The signing of the SPA, which is subject to the receipt of all regulatory approvals, was announced at a jointly-held press conference on Tuesday, May 2, 2017. This agreement capitalizes on the synergies of both companies in a manner that is mutually beneficial, along with their stakeholders, the local telecommunications industry and the people of Trinidad & Tobago. TSTT is the largest telecommunications provider in Trinidad and Tobago. A significant element of TSTT’s current strategic plan involves the deployment of both wired and wireless high-speed broadband internet capabilities, throughout the entire nation. This includes investment in fibre optic solutions together with the associated technological infrastructure and systems. Since 2006, Massy Communications, formerly Three Sixty Communications, has been building out its telecommunications network and expanding its services, to currently offer a range of services which include: Fibre Optic (FTTH) Infrastructure deployment which is utilised to deliver High Speed Internet and IPTV to residential and SME customers. Dedicated Internet/IP transit Clear Channel Domestic/ Metro Ethernet and International Private Lines International Wholesale Termination and Enterprise Voice Solutions The telecommunications industry is dynamic, disruptive and intensely competitive. Additionally, consumer and business demands, particularly around high speed data continue to grow exponentially. These growing demands mandate telecom providers to continue to make advanced technological improvements at significant costs. These demands also result in the need to continue to recalibrate the business models employed. In 2016, TSTT secured $1.9B in financing to create a Fibre to the Home (FTTH) solution throughout all of Trinidad and Tobago, including areas where Massy had already built out a robust network. This purchase will allow TSTT to have immediate access to an additional 34,000 homes passed with fibre. These homes are located in Diego Martin, Port of Spain, Trincity, Arima and San Fernando. This agreement therefore means that TSTT now has the benefit of incorporating these customers into its existing infrastructure. The agreement includes all of Massy Communications infrastructure relating to both its Enterprise and Consumer networks, all existing Enterprise and Retail customers and the entire operational and business support systems. Therefore, this purchase will result in the acceleration of TSTT’s deployment of its next generation network. It will also facilitate the opportunity to immediately deliver a new suite of products and services to our existing customers in these areas. Furthermore, it will provide the Massy customers with the assurance that their future communications needs are well placed. Of equal importance is the foreign exchange savings to Trinidad and Tobago that this agreement will foster. All telecommunications technological investments requires foreign exchange. Additionally, this agreement removes the duplication of significant capital expenditure, which both companies agreed is in the best economic, environmental and developmental interest of Trinidad and Tobago. “Today marks a historical moment for the telecommunications industry in Trinidad and Tobago in general and for the management, staff and all stakeholders of TSTT in particular. As part of TSTT’s current $3.8B five-year strategic plan, we clearly indicated that we have one primary mandate and that is to transform TSTT from a legacy 20th century telecoms provider, to an agile broadband communications company. To achieve this goal, we always intended to employ a multi-prong approach, using both organic and inorganic growth strategies. Our focus on high-speed broadband internet solutions is demonstrated by being the first and only local telecommunications provider to provide world-class fixed wireless LTE and mobile LTE technology and solutions. Our investment will also continue with our wired solutions where fibre implementation is pivotal. As such, this agreement significantly accelerates our deployment strategy which will benefit all of Trinidad and Tobago. We also see this as the beginning of a new robust alliance with the Massy Group.” Dr. Ronald Walcott, CEO – TSTT. This transaction is a win for both companies, their employees and customers. Both organizations are clear that High Speed data and ICT development is a catalyst for national development. This agreement will make both companies stronger and more efficient in delivering on their strategic imperatives, by delivering the most technologically advanced broadband and HD TV solution to customers, along with exceptional customer service support. Citizens of Trinidad & Tobago will have access to fast, consistent, reliable, market leading internet speeds."