Major Stories

Digicel’s Founder, Owner Could Lose Control of the Telecom Company

64 year-old Irish billionaire businessman and founder and owner of Digicel Denis O’Brien could lose control of the telecoms company after a debt deal. International media reports say the agreement will see holders of around 50% of the entire capital of the business agree to a reduction in the company’s total debt of $1.8 billion through a debt-for-equity swap.
Once completed O’Brien will become one of the largest shareholders and an actively involved director.
According to further reports, Fitch, the credit ratings agency, said Digicel’s borrowing levels are “unsustainable” relative to earnings, particularly given that the company had issued a profit warning on Haiti, one of its main markets, last November amid a political, economic and humanitarian crisis in the country.

Local Analyst Dennis Chung says the change is structural and will not impact customers. He however is reiterating the need for the sector and government intervention. Watch the report here:

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