08/22/2019 | News release | Distributed by Public on 08/22/2019 15:57
Cable Bahamas Limited (CAB) has advised that their Board of Directors on August 16, 2019, signed a definitive agreement to sell Summit Vista LLC to Grain Management LLC for $332,500,000.
CAB's press release:
Sale makes good on promises made by First Bahamas CEO at January AGM
NASSAU, The Bahamas, Sunday, August 18th, 2019: BISX listed CBL Group announced today that it has entered into a definitive agreement to sell its Florida based operation, Summit Broadband, to Grain Management LLC, in a carve-out transaction for $332,500,000. The agreement follows a multiple stage bid process led by RBC Capital Markets.
President and CEO of CBL Group, Mr. Franklyn Butler, said 'The sale of Summit Broadband will allow us to focus our resources on REV and ALIV, our core Bahamian operations. At the same time, we will be able to deleverage the group's balance sheet, a key objective I committed to as part of the CBL Group's Strategic Plan announced at the AGM in January earlier this year. I am proud to be able to deliver on this promise in such a significant way. CBL Group has undergone tremendous growth over the last six years and the performance of Summit Broadband has proved significant in contributing to these results. I wish to personally thank the management and staff at Summit Broadband for their contribution to CBL Group performance over the years and wish them well in this next exciting phase of their growth. I would also like to thank our shareholders for their tremendous support and patience and advise them the focus is now clearly on the REV and ALIV operations in The Bahamas.'
'Summit Broadband has an impressive history of serving businesses across multiple industries and residential customers in central and southwest Florida communities,' said Mr. David Grain, Founder and CEO of Grain Management. 'As a global investor in the industry, Grain is poised to partner with Summit Broadband in advancing its position as a leading fiber-optic telecommunications provider, and aid in the expansion of these services in an increasingly smart and connected world.'
Mr. Ross McDonald, CBL Group Chairman added that 'The sale of Summit Broadband unlocks the value created by the CBL Group's management team over the past six years and validates the Board's decision to be the first Bahamian public company to invest in the US market.'
The sale process was conducted by RBC Capital Markets through its Denver and New York based offices and is expected to close in the fourth quarter. TD Securities served as financial advisor to Grain Management in the transaction, Alston & Bird LLP served as legal counsel, and the Direct Lending team at Deutsche Bank provided committed debt financing for the transaction.
In conclusion, Mr. Franklyn Butler said, 'I want to remind the public that the CBL Group is the country's only 100% Bahamian-owned telecommunications operator and we remain focused on delivering the best choice, value, network and experience for internet, mobile/fixed voice and TV - for both corporate and residential customers. Right now more than at any other time, the future is extremely bright for those that wish to use, invest in, and work within the REV and ALIV operations. We are truly Bahamian. We are truly Bahamian focused……and we are building a better future for the Bahamas, now.'