OneComm offers to buy out shareholders
One Communications Ltd., the island’s largest internet and cable provider, has gone directly to shareholders, inviting them to “offer to sell their shares” to the company for $4.50 per share, during an offer period spanning February 27 to March 10.
In a letter dated February 20, the company said: “The board of directors have determined that it is in the best interests of the company to offer shareholders the opportunity to sell their shares back to the company, if they so desire.”
The letter added: “If you wish to avail yourself of this opportunity to sell your shares to the company, please contact Investor Relations by e-mailing Shareholder@onecomm.bm or calling (441) 700 7739 who will advise on the steps you need to take in order to participate.
“All documentation required by the company for a shareholder to sell their shares must be received by the company on or before 10 March 2023.
“The offer will be limited to a maximum number of shares as determined by the board of directors.
“At the end of the offer period, if the total number of shares offered for sale to the company is greater than the repurchase limit, the shares offered for sale will be repurchased by the company on a pro-rata basis proportionate to shareholding.
“All shares repurchased will be cancelled by the company. The company reserves all rights to cancel or amend the offer terms at any time.
In an earnings release of the private company in March 2020, net profits of $16 million were declared for the year ended December 31, 2019.
During that year the company repurchased 1,005,037 shares (2018: 712,599) under an approved share buyback programme at an average price of $3.58 (2018: $2.99) per share.
The company website lists the last earnings report at the end of July 2020, the financial results for the six month period ended June 30, 2020, with net income for the half year of $8.9 million.
The Covid-era press release noted the company’s operations in the Cayman Islands continued to focus on expanding the fibre footprint, as it experienced growth in subscriptions despite the pandemic-causing economic crisis.