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Digicel to earn millions from bond sale to purchase Digicel Pacific

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.

 



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