Public Consultation Alert – (Regulatory Authority) Transact Ltd Change of Control

There is a public consultation by the Regulatory Authority concerning the proposed change of control of Transact Ltd. The deadline for submitting is Monday, October 26th.

The essential points seem to be:

  • Transact proposes to shift 100% of its shares within the Digicel Bermuda structure (Telecommunications Bermuda & West Indies Ltd. – TBWI).
  • Digicel is proposing to transfer the ownership of Transact from Wireless Holdings Ltd. to TBWI.
  • There is no sale of any assets or change in beneficial ownership.

This is essentially purely an internal company reorganisation by Digicel. The apparent purpose is to allow Transact to benefit from the 114B license currently held by TBWI. Transact in its current format is 100% owned by non-Bermudians and in order to trade in Bermuda it must have the benefit of a 114B license.

There will be no changes to operations or strategy within Digicel from this move, and Transact will remain ultimately owned and controlled by Denis O’Brien.

The consultation asks 3 questions:

  1. Will this proposed transaction have an effect(s) on competition within Bermuda’s electronic communications sector?
  2. Will this proposed transaction have an effect(s) on the residents of Bermuda with a particular interest in, but not limited to, the provision of electronic communication services in Bermuda?
  3. Will this proposed transaction have an effect on innovation within Bermuda’s electronic communications sector?

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