Jeff Prosser's plan to dismantle BTL and replace it with his own company, Belize Telecom, has been set aside. The news came in late this evening via a notice to shareholders which says that the extraordinary general meeting scheduled for October 26th. Has been canceled. According to the notice, the company's board of directors has "withdrawn its approval of the plan." Why the sudden Change? Well our information says that it goes deeper than the board of directors. BTL today received a detailed, five page letter from the chairman of Macmillan Brothers Limited, and past BTL chairman Nestor Vasquez making it clear that his company intends to challenge the controversial maneuver.
As a local shareholder with significant holdings, the Macmillan letter made it clear that there are 12 points on which the company planned to challenge the sale. In summation, it warned the board that the directors could be personally liable for defrauding the shareholders, and advised them to adjourn the AGM. We don't know if that's what did the trick, but three hours after that was delivered to BTL, the company issued the notice canceling the extraordinary meeting. It's a coup for the over one thousand Belizean shareholders including the Workers' and Teachers unions, because the repentant Prosser has sweetened the pot, so to speak.
The notice says that those shareholders who want to cash in their shares will receive 5 dollars, 88 cents per share, which its 42 cents more than he paid Social Security 7 months ago. And for those who don't want to sell, Prosser is going against his own stated policy, and is offering them preferred stock which would attract a minimum dividend of 10%. That's a far ways off from BTL's glory days where dividends regularly attracted a yield of over 20% but it's better than money in the bank which earns about 6%. And what's next for BTL? Well the release says that after everyone decides whether they want cash or stock, the board may still decide to liquidate the company.