Cable Bahamas believes that its combined $65 million purchase of two communications providers, which are based in Florida, could be the catalyst for yet more opportunities for growth for the company. It is starting to expand beyond what it describes as a 'mature' local market and toward a market that contains 18 million people.
The BISX-listed communications provider has revealed its proposed acquisitions of NuVu and Marco Island Cable, both based in Florida, and Summit Broadband, which has its headquarters in Orlando. Cable Bahamas says that it is one of the few entities in the Bahamas to "venture out and expand" beyond the borders of the nation.
With both United States and Bahamian regulatory approvals for the deal still pending, executives at Cable Bahamas were reluctant to offer specific information on the purchases, such as figures or future earnings projections. They have, however, said that they have high hopes that the deal will be completed by the end of this year.
Cable Bahamas' senior vice-president of finance, Barry Williams, believes that "the synergies are pretty good", since the three businesses are all in the exactly the same line of business: cable and HD television, fixed line voice services delivered through a fiber optic network, and next generation internet.
Cable Bahamas intends to finance the purchases with a mixture of new and existing senior credit facilities, the issuing of ordinary shares to one company's owners, and a preference share issue to investors in the Bahamas. Although Williams did not reveal how the purchase price would actually be separated between those instruments, he did state that the shareholders at Summit Broadband would be receiving the ordinary shares.
