Finally, it is finished - this morning Jeffrey Prosser flew into the country on his 727-jet and this afternoon at 2:00 pm in the Cabinet Room in Belmopan, he and Finance Minister Hon. Ralph Fonseca signed off on the deal to purchase controlling interests in BTL.
The signing ends a trying 101 days for government, since it first announced the sale on December 12th of last year. Trying because the deal proved difficult, and at times appeared impossible to close, putting in jeopardy $114 million that government had borrowed to facilitate the transfer of shares from Michael Ashcroft's Carlisle Holdings to Prosser's Innovative Communications Company.
And while the tough part of getting Prosser to sign is over, today's release from government makes it clear that there will still be a transition period. The statement says, "The agreement will close on 31st March 2004 with the transfer to ICC of 52% shares in BTL." This means that Carlisle Holdings and Ashcroft's management team will continue to run BTL and retain nominal possession of the shares until the end of the month, leading to April 1st when ICC takes over.
The release goes on to say "ICC will pay the same price as that paid by the government for the Carlisle shares," which we take to means that government will finally get back the $114 million it fronted to facilitate the sale. In the 120 days it held that money - borrowed at 9.75% from the International Bank of Miami - it accrued an estimated $3 million interest - which, presumably, government now has to absorb as its cost.
And while government gets off it's debt, the good news for small local shareholders is that Prosser's ICC may also be interest in their shares. Today's release says that ICC's initial investment will be over (BZE) $200 million - which we take to mean that Prosser Will spend another $86 million on shares from social security and the small shareholders so that he can own 100% and make BTL a privately owned and operated company.
We hope to have that confirmed when we speak to Prosser tomorrow morning before he leaves Belize.