LaqTel warns govt time running out for Sunbeach deal

Trinidad & Tobago mobile operator LaqTel Communications will withdraw an offer to buy a majority share in Barbados ISP Sunbeach Communications unless the Barbados government gives assurances that Sunbeach's mobile license will remain with the company, The Trinidad Guardian quoted chief investor Joseph Laquis as saying. According to stipulations under which the license was granted, if there is a 49% or more change in ownership of the company, permission is required from the minister of energy and public utilities, Anthony Wood, for Sunbeach to keep the license. However, Laquis assured that the license would remain with Sunbeach. "There seems to be some misunderstanding where certain people feel there will be a transfer of the license. This is not so. The license stays with Sunbeach and we purchased majority shares in Sunbeach," Laquis explained. A Barbados newspaper reported in early September that Telcom Holdings, the holding company of LaqTel Communications, had already deposited US$2.59mn for the sale with Caribbean Money Market Brokers Barbados and planned to offer a mobile service on the island by year-end. However, Telcom Holdings' agreement to acquire Sunbeach expires on September 30. Sunbeach has been trying to secure funding to launch its mobile service since it was granted a license in mid-2003, along with competitors Digicel and Cingular (whose Caribbean assets are now owned by Digicel). Both companies launched their service in February 2004. Laquis warned that the government could face angry investors if the sale did not go through. The Barbados Stock Exchange (BSE) suspended trading in Sunbeach shares on September 28 last year due to financial concerns about the company. Investors are anxious for the shares to start trading again. Sunbeach is the largest ISP in Barbados and had over 10,000 customers in December last year.