Dark clouds hover over Telemedia; shares and debts

Last week Friday, the government launched its prospectus for the sale of Telemedia shares but less than a week later, a dark cloud hovers over the public offering of shares in the company.  On Thursday, Justice of Appeal Dennis Morrison heard extensive arguments about whether an injunction should be granted to halt the sale of shares. Dean Boyce, one of the trustees of the BTL Employees Trust, brought a claim in the Supreme Court earlier this year challenging the constitutionality of GOB’s compulsory acquisition of Telemedia in August, 2009.  The Supreme Court ruled that it was constitutional and Boyce immediately appealed and sought an injunction to freeze the sale until the appeal is complete.

Justice Morrison heard arguments up to six o’clock on Thursday evening from both sides and reserved his decision until November fifth.  We contacted Individual members of the Belize Business Bureau and the Chamber of Commerce who said that the application for the court injunction has injected greater pessimism over the ability of the government to sell the shares. The price is five dollars per share, which puts the value of Telemedia at around two hundred and thirty million dollars, way below the estimated value of three hundred million U.S. dollars at the time of nationalization. The government hopes to raise about one hundred million dollars. The Social Security Board has been asked to invest fifty million but the Board is yet to be convinced of the investment and has scheduled consultations with social partners before a vote is taken next Friday.