WestStar sells off WestTel shares

The
locally-based sister company of telecommunications provider WestTel Ltd. has
agreed to transfer its remaining shares in the telecommunications company to a
Bermudian firm, pending approval by the Information, Communication and
Technology Authority.

According
to the agreement, WestStar TV Limited will transfer its 33 per cent
shareholding to Bermuda-based KeyTech Limited. KeyTech already owns 67 per cent
of the shares in WestTel. Following the completion of the transaction, KeyTech
would hold all of WestTel’s shares.

A
general commercial notice posted in the Cayman Islands gazette in May noted:
“As part of this application, WestTel also requested an amendment to…its ICT
licence in order to delete the requirement that at least 25 per cent of its
equity be held by Caymanians.”

Companies
governed under the Information, Communication and Technology Authority Law in
the Cayman Islands do not have to comply with the Local Companies (Control)
Law, which requires 60 per cent Caymanian ownership in any local business.

The
WestTel share transfer was not expected to affect WestStar TV, local cable
customers, or the local news operations of the Cayman 27 television station.

WestStar
TV representatives stated that there would be no immediate impact to WestTel’s
telephone and internet customers in the Cayman Islands.

The
shares transfer is basically occurring because the Bermudian company wishes to
expand WestTel’s fibre-optic cable network in Cayman. The cost of that
expansion is being borne entirely by KeyTech.

“WestTel’s
infrastructure plan requires a large capital injection, which majority
shareholder KeyTech Limited is willing to provide,” WestStar’s press release
stated. “As a result, KeyTech and WestStar have been in discussions to ensure
KeyTech’s shareholding in WestTel reflects this investment.”

Neither
company is publicly traded, so the price of the shares transaction was not
immediately known.

Both
businesses promised to keep all stake holders informed during the changeover.

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