The Digicel Group stands
to make about US$650 million after the telecommunications company on Wednesday
sold bonds to pay for the acquisition of a sister company in the South Pacific.
Jamaica-based Digicel sold US$775 million worth of bonds due 2018 in a private placement to part-fund the purchase of Digicel Pacific for US$825 million.
The sale of Digicel Pacific to its parent will generate the huge windfall for Dennis O'brien, Chairman of the Digicel Group, who holds an 84% stake in the company.
The rest of Digicel Pacific is owned by management and private investors.
Sources said the bond sale was over-subscribed.
Mr O'Brien will, nonetheless, reinvest a portion of his personal fortune by buying some of the bonds on his own account.
The businessman created Digicel Pacific four years ago.
It grew its subscriber base by 61% last year to 1.63 million and has positive cash flow.
Jamaica-based Digicel sold US$775 million worth of bonds due 2018 in a private placement to part-fund the purchase of Digicel Pacific for US$825 million.
The sale of Digicel Pacific to its parent will generate the huge windfall for Dennis O'brien, Chairman of the Digicel Group, who holds an 84% stake in the company.
The rest of Digicel Pacific is owned by management and private investors.
Sources said the bond sale was over-subscribed.
Mr O'Brien will, nonetheless, reinvest a portion of his personal fortune by buying some of the bonds on his own account.
The businessman created Digicel Pacific four years ago.
It grew its subscriber base by 61% last year to 1.63 million and has positive cash flow.