OneComm in share buyback
Bermuda’s largest internet and cable provider, One Communications Ltd, has launched another share buyback offer.
In a letter to shareholders sent out this month, the telecommunications firm offered to buy the shares at $5.50 each.
“After the offer, shareholders are not expected to have the opportunity to sell their shares back to the company for the foreseeable future,” One Communications said.
A spokesman for the telecommunications firm added that since delisting from the Bermuda Stock Exchange, One Communications has remained actively engaged in repurchasing its shares.
Just before the delisting, the shares were last sold on the BSX for $3.95, with 40,319,339 shares outstanding and a market capitalisation of $159,261,389.
“This invitation to shareholders to sell their shares to the company at $5.50 per share represents a substantial increase in share price and we are providing this opportunity to our shareholders as we anticipate that the repurchase programme will close for the foreseeable future,“ One Communications told The Royal Gazette.
Next year they plan to focus their capital on advancing their telecommunications infrastructure in Bermuda.
In a letter to shareholders this month, One Communications said it was “in the best interests of the company” to make the offer to shareholders.
The offer period is from September 25 to October 6, and 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,” One Communications said.
The firm made a similar offer to shareholders to buy shares back for $4.50 each, back in February.
It also annually offered to buy back shares during the years leading up to its delisting in February 2021.
Founded in 1998, One Communications Ltd (formerly KeyTech Ltd) is a diverse telecommunications holding company.
Its subsidiary companies specialise in cellular voice, high-speed internet, subscription television and data solutions for both residential and corporate customers with operations in Bermuda and the Cayman Islands.
One Communications has a Massachusetts-based parent company, ATN International Inc.