THE parent company of LIME, Cable & Wireless, today announced that it has signed a non-binding memorandum of understanding to acquire a 51 per cent interest in the Bahamas Telecommunications Company.

Pending due diligence, finalisation of contractual terms and regulatory approval; the transaction should be completed in the first quarter of 2011 for a total cost of US$210 million.

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[naviga:li]C&W will pay US$210 million to acquire the majority equity stake in BTC, which includes management control;[/naviga:li]

[naviga:li]BTC will enter into agreements with C&W for the ongoing provision of various support services, branding and use of intellectual property;[/naviga:li]

[naviga:li]The liberalisation of the mobile sector will commence no sooner than three years after the transaction; and[/naviga:li]

[naviga:li]C&W will develop a business plan for BTC in conjunction with the Bahamas government. This plan will accommodate the modernisation of telecommunications in the Bahamas and for the post-privatisation development of BTC.[/naviga:li]

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“We believe there is a solid strategic fit between LIME and BTC with many possibilities to build the customer experience and the Bahamas community. If successful, this transaction can deliver a new era of innovative services like mobile TV and high-speed broadband in The Bahamas. This MOU is a positive first step. The due diligence will now provide a fuller understanding of BTC operations and the concerns of its stakeholders – which is the right way to start and a big part of getting to know the flavour of The Bahamas,” said LIME Chief Executive David Shaw.

BTC is wholly-owned by the Government and is the exclusive mobile operator in the Bahamas and, says LIME, is the leading provider of fixed-line and broadband services on that island.

According to the MOU: