Bermuda-based KeyTech Group of Companies, which owns Logic in Cayman, has announced plans to purchase the parent company of WestStar.
The company released a statement on Monday confirming its interest in purchasing British Overseas Territory Cable & Telecommunications Ltd.
KeyTech, which was incorporated in 1998, would not comment further than the statement but confirmed “KeyTech is acquiring all holdings in BOTCAT.”
“We are excited about these transactions as they are the right strategic fit for the long-term growth of the company. It allows our group to expand and focus its investments, in the best interest of all stakeholders, in both Bermuda and Cayman,” KeyTech’s Chief Executive Officer Lloyd Fray said in the statement.
The deal is subject to regulatory approval in Cayman.
The telecommunications regulatory body in Cayman, the Information and Communications Technology Authority, will review the transaction after details of the deal are published in the official Cayman Islands Government Gazette.
ICTA managing director Alee Fa’amoe said, “Under Section 25 of the ICT Law, proposed ownership changes must be published in the Gazette. Fourteen days thereafter, the Authority will review the proposed ownership changes and any comments received thereto.
“Until those processes are complete, it would be inappropriate for the Authority to comment on any proposed ownership changes of an ICT licensee.” WestStar also did not wish to comment on the deal and referred the Cayman Compass back to KeyTech’s statement.
BOTCAT Holdings Ltd. has owned WestStar since 2012.
The announcement comes as Cayman’s four telecommunications companies are in the midst of an infrastructure race to build “fiber to home” networks that will enable them to offer high-definition television and high-speed Internet to customers across Cayman.
Local startup C3 became the latest company to join the increasingly competitive market in April. LIME, Logic and WestStar have also been completing infrastructure upgrades.
WestStar launched on Grand Cayman in 1992 as the island’s first cable television provider and two years later expanded to the Sister Islands. Following the expansion, in 1996 the company introduced an electronic news gathering van which introduced instant live programming to the island, and enabled the first televised election in the country’s history.
The pending acquisition of WestStar by KeyTech is not the first dealings the companies have had with one another. In 2003, WestStar joined forces with KeyTech to launch WestTel – an Internet and telephone service provided to residential and corporate clients.
KeyTech continued to steadily increase its shareholding in WestTel until it officially became known as Logic in 2010. Later, WestStar sold all its shareholding in WestTel to KeyTech.
The future of local television has been up for discussion in recent months. ICTA issued a call for input from the public earlier this year, seeking submissions to help define local television content.
The Authority had sought feedback on whether television service licensees should be obliged to provide a local television service, whether there should be a quality standard for local content, and how local content should defined.
Each license, excluding WestStar’s, includes a definition of what the service is and what is required.
In Monday’s statement, KeyTech also announced an agreement to sell 100 percent of its interest in The Bermuda Telephone Company Limited to Barrie OpCo Limited.
Roy Graydon, director of Barrie OpCo, said the company was thrilled to have the opportunity to invest in Bermuda.
“We are confident that an independent BTC has a bright future as a thriving part of the Bermuda telecommunications landscape.” That transaction is also subject to regulatory approval in Bermuda.