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Feb. 19, 2007

Majority stakeholder Denis O’Brien is reportedly in the process of securing funding to buy out the minority shareholders of the Bermuda-based mobile operator.

O'Brien will then launch a new company under his direct ownership.

O’Brien, who holds about 78 percent of Digicel Limited shares, has offered to acquire all of the outstanding shares for cash.

Then he will raise a bond of $1.8 billion to cover the expense. The remainder of the money will be financed by his new company, Digicel Group Limited, which will also be based in Bermuda.

Once the transaction is complete, Digicel Group will have debts totaling $2.7 billion.

Digicel Ltd. has approx. 4.1 billion customers in 22 markets across the Caribbean and has annual revenues of $1.2 billion.

The company is also planning to enter the Central American market by offering services in Guyana, where it is investing $60 million.

Guyana, with a population of approximately 800,000 and mobile penetration of only 22 percent, represents a good growth opportunity for Digicel.

"We are delighted to be here in Guyana at last and are excited about the huge potential for growth that Guyana offers,” said Leslie Buckley, vice chairman of Digicel Group.

“Our goal is that mobile penetration levels in Guyana will double in the not too distant future," he added.

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Source: Wireless Week