The Liberty Cable and Wireless team including Chief Executive Officer (CEO) of Cable and Wireless Communications Inge Smidts (centre) with Curaçao Ministers Kenneth Gijsbertha and Zita Iesus-Leito, and CEO of the UTS Group Paul de Geus.
WILLEMSTAD--Curaçao’s corporate governance advisor SBTNO noted a lack of balance between the division of proceeds and risks for shareholders Curaçao and St. Maarten with the sale of United Telecommunications Services (UTS) to Liberty Latin America (LLA).
This was one of several issues raised by the regulator in its report to the Council of Ministers dated March 22. Nevertheless, the proposed transaction completed six days later was not seen as against Curaçao’s general interest.
The claim is that St. Maarten is sharing in the revenues, but not the risk associated with UTS subsidiaries Blue Nap Americas (Dataplanet), Cariflix, and ATM (TeleCuraçao). These are to be placed in a foundation with as stated goal “acquiring, managing and liquidating assets of UTS and any of its subsidiaries.”
SBTNO reasons that St. Maarten as 12.5 per cent owner will get part of the share sale revenues and possible proceeds from other UTS assets but is taking less risk due to its minority stake.
Curaçao’s Traffic, Transport and Spatial Planning Zita Jesus-Leito disagrees. She said the process to sell St. Maarten’s shares takes longer because it requires a national ordinance passed by Parliament, but that the same conditions will apply there.
