THE Telecommunications Services of TT (TSTT) yesterday dismissed claims on social media that Amplia Communications Ltd (ACL) was formed to buy Bmobile from it.
The claim was made by Progressive Empowerment Party leader Phillip Edward Alexander.
In a statement, TSTT said, “Amplia does not have either a wireless or mobile concession to legally operate any of those lines of business and there are no pending applications with the regulator, the Telecommunication Authority of TT (TATT).” TSTT said with more than 70 per cent of its business being wireless, “the inference of a reverse 'takeover' is implausible and simply inaccurate.”
ACL is a wholly-owned subsidiary of the TSTT Group with its own board of directors and management. TSTT added.
TSTT said it acquired 100 per cent shareholding of Massy Communications Ltd (MCL) on July 31, 2017 for $215 million, audited and assessed to be $42 million less than the “net book value” of the assets.
At the time, MCL was operating as a subsidiary of the Massy Group of Companies, with an existing board of directors. TSTT said the MCL board resigned. The normal industry practice is that the parent company appoints either existing directors and/or management to its subsidiary board.
As such, TSTT said it appointed a board for the acquired entity. With MCL no longer part of the Massy Group, TSTT said the company’s formal name was changed to ACL in November 2017. TSTT said it has one commercial brand, bmobile, made in 2016. As such, TSTT continued, all Amplia products and services must be marketed through bmobile.
TSTT said it engaged with all relevant stakeholders including the Communications Workers Union (CWU) on this acquisition, the business implications and other relevant matters.
As part of its ongoing stakeholder consultation, TSTT said it re-energised its regular executive forum with the CWU in May to “ensure that there is transparency and clarity with our decision especially those that may impact employees.”
On social media, this was confirmed by CWU president John Julien.