BURBANK , Calif. , Sept. 9 /PRNewswire/ -- An affiliate of Shamrock Holdings, Inc. the private investment company of the Roy E. Disney family, has agreed to acquire substantially all of the assets and business of Guam Telephone Authority ("GTA"). The Shamrock Holdings affiliate is TeleGuam Holdings, LLC, which itself is an indirect portfolio company of Shamrock Capital Growth Fund, L.P. ("SCGF"). The total consideration for GTA will be $140 million in cash, plus a $10 million promissory note payable in eight years.
GTA, the last government owned local exchange carrier in the US , provides fixed line and wireless telecommunications services to the people of Guam . It serves approximately 65,000 telephone access lines and has cellular assets as well. The GTA currently employs approximately 360 people and has been serving the people of Guam for over thirty years.
The transaction marks the culmination of a multi-year privatization effort by the Government of Guam. The privatization will allow TeleGuam to offer a number of new services previously prohibited by the Government due to GTA's status as a government entity. The privatization comes at an important time for Guam , with anticipated growth in military presence and the need for improvements in the quality and breadth of communications services.
Shamrock Capital Growth Fund is a private equity fund based in Burbank , California and is an affiliate of Shamrock Holdings, Inc., the private investment vehicle of the Roy E. Disney family. Shamrock and its affiliates have been investing in private equity since its inception in 1978. Current SCGF portfolio companies include NETGEAR, Inc., PRN Corporation, Portal Player, Inc., Triad Broadcasting Company, L.L.C., and Lifestage Media Group, Inc.
Robert Taylor, who has more than 20 years of experience in many facets of telecommunications, including with local, long distance, domestic, international, incumbent and competitive providers, will serve as the chairman and chief executive officer of TeleGuam.
"It will be a privilege to serve the people of Guam ," stated Mr. Taylor. "GTA's current employees have been dedicated to building and managing telecommunications operations in Guam , and TeleGuam will depend on their experience and knowledge to return the company to growth. We will be adding a small management team, but our success will depend in large part on the current employees and the people of Guam . TeleGuam is excited about the opportunity and is working diligently on its plans for improved services at attractive prices."
"We are very pleased that TeleGuam has entered into an agreement to purchase the assets and business of GTA. We worked long and hard to come up with a proposal that we felt brings value to the employees of the GTA and the people of Guam ," stated William Wynperle, Vice President of Shamrock . "We are looking forward to closing the transaction in an expeditious manner so TeleGuam can begin the implementation of its plans and introduce customers to an improved communications experience."
Consummation of the transaction is subject to approval of the Guam legislature and the Federal Communications Commission. |
