A comprehensive round-up of the latest business news covering all sectors within
the Isle of Man’s diverse and dynamic business environment.
MANX TELECOM TO BE ACQUIRED BY
INFRASTRUCTURE INVESTMENT COMPANY
Manx Telecom has received an offer from Basalt Infrastructure Partners II GP
Limited to acquire the business, and will recommend the deal to shareholders.
B asalt is a committed, long-term
infrastructure investment firm with a strong
track record of investing in strategic
mid-market infrastructure assets, with a focus on
energy, transport and utilities. The company has
offi ces in London and New York.
on-Island telecoms business, while investing
for growth in its international business, Vannin
Ventures.Those are the headlines from
the company’s annual results for the year
ended December 31, 2018, which have been
announced. The acquisition, which values Manx Telecom at
215p per share, is expected to complete in early
May. Manx Telecom CEO, Gary Lamb, commented:
“2018 was another year of robust performance
for Manx Telecom. Thanks to the hard work of
our people, our on-Island telecoms business
has remained stable – with a solid performance
in fixed line, broadband and data services,
and growth in mobile – while our international
growth business, Vannin Ventures, has seen
growth in Global Solutions and has put down
strong foundations for the future. Goshawk
Communications has made good progress,
not least with our recently branded UK
proposition, called ‘Audacious’ which uses the
same innovative technology behind our MT
clearSound product. We remain positive in the
outlook for the Group due to the solid underlying
revenue, EBITDA and cash flow performance
during the year, and are continuing to explore
potential growth opportunities with the aim of
identifying new products and services for a
global audience.”
Manx Telecom’s strategy in recent years has
seen significant investment in the Isle of Man’s
telecoms infrastructure, including investment in
several generations of broadband technology,
the latest being the ongoing roll-out of Fibre-to-
the-Premises (FTTP) which is already available to
over 10% of premises on the Island. In addition,
Manx Telecom has increased its potential to
invest in exciting technology-based growth
opportunities, such as the development of the
hearing enhancement service provided on the
Island as MT clearSound.
Basalt is attracted to Manx Telecom’s key
strengths, namely a stable business, a proven
financial and operational track record led by a
strong management team, and the opportunity
to continue investment in the new network
buildout and new business strategies.
Basalt intends to work with the Manx Telecom
management team to invest in new technology
to deliver improved customer service and
effi ciencies to the business. It recognises the
skills, technical ability, industry knowledge and
experience of Manx Telecom’s management
and employees, envisages supporting
the existing management team under the
acquisition, and believes that the acquisition will
provide enhanced growth and development
opportunities for Manx Telecom employees.
The announcement today marks the beginning
of a process which is expected to complete in
two to three months.
Kevin Walsh, Chairman of Manx Telecom,
said: “Since its IPO in 2014, Manx has performed
well and delivered consistent returns for its
shareholders through resilient earnings, strong
6 |
Manx Telecom CEO, Gary Lamb
cash generation and a growing dividend. Basalt’s
cash offer recognises the quality of the business,
the management team and the employees
and provides certainty to shareholders. After
careful consideration and negotiation the
Board concluded that it would unanimously
recommend the offer as being in the best
interests of shareholders, employees and other
stakeholders.” Commenting on the acquisition, Steven Lowry,
Partner of Basalt Infrastructure Partners LLP,
said: “We are pleased to announce Basalt’s
board recommended offer for Manx, which
provides cash certainty to shareholders. We are
keen to support the company through its next
phase of capital investment, which includes
funding fibre to the premises, its commitment
to Vannin Ventures and the future requirement
of a 5G network roll out. We look forward to
working closely with Manx’s management team
and employees realise their vision to continue to
provide high quality services to customers and
position the company for the future.”
Meanwhile Manx Telecom made good progress
last year with its strategy of strengthening its
Manx Telecom Chairman, Kevin Walsh, said
the company had presented a ‘solid set of full
year results for 2018’ which demonstrated a
‘stable trading performance’. He added that
the company’s strategic focus would continue
to be on defending its core market position
here on the Island by delivering high-quality
customer service, while also seeking off-Island
growth, through Vannin Ventures, by identifying
and developing innovative new products and
services. In addition to the launch of MT clearSound
(which was a world first in the field of mobile
technology) another 2018 operational highlight
was progress with the ongoing roll-out of Fibre
to the Premises (FTTP) with over 10% of the
Island’s premises passed by the end of last year.
There has been a 13.5% take up of the service
to date.