Bahamas Telco Selling Majority Stake

State-owned Bahamas Telecommunications Company has hired Citi to advise on the sale of 51% to a strategic investor. A person close to the transaction estimates that the company as a whole could be worth about $600m, equal to about 6x 2008 Ebitda. A BTC spokesman says that 1 year after the stake is sold, telecom companies can compete to obtain licenses to provide fixed-line telephone services. A year after that, he adds, licenses will be awarded for mobile phone operations. BTC provides services to over 334,000 wireless (through its GSM and CDMA networks), 132,000 fixed line and 18,500 broadband customers throughout the Bahamas. In addition, BTC has some 190 roaming agreements in place serving the more than 4m tourists who visit the Bahamas each year. The government intends to keep a 49% stake. KPMG has been hired to advise on financial and regulatory issues and Charles Russell will provide legal advice.