Aug 2012 Financial News

OCM to control Citadel within four weeks... Lee Sing mum on details

Aug 28, 2012

While the owner of Citadel Group Louis Lee Sing remains silent on the on-going acquisition of the group’s radio stations by One Caribbean Media (OCM), Cris Seecharan, executive director of Telecommunications Authority of T&T (TATT) said the transaction is expected to be concluded in the next four weeks. In a telephone interview yesterday, Lee Sing said he preferred that his private affairs remain private. “I rather not divulge any details. It’s one thing if its regarding public affairs, but this is private and I would like it to remain as such.” Asked how come he still occupies offices at Citadel, Lee Sing said: “I am still in charge because the process has not been concluded as yet.” These things take time, he noted. Seecharan confirmed that the process is a lengthy one.

He said all the required documents have been submitted by both parties and they are currently in the hands of the TATT board. However, Seecharan said there are still some conditions that have not been fully met and TATT is working with the relevant parties to make sure these conditions are fully satisfied. Seecharan said he was unable to divulge those conditions. He said once the conditions are met, the board would grant full approval. He estimated that it should be wrapped up within the next four weeks. Seecharan explained that the entire process is similar to a company or individual applying for a licence for the first time. For example, he said both parties are required to write to the authorities, whereby TATT would conduct a full investigation. This due diligence process includes submission of the company’s information such as VAT, registration and another relevant documents, he stated.

A background check is also conducted on all directors where a police certificate of good character is required, Seecharan further explained. He said the due diligence process is a rigorous one, requiring a marketing plan and full technical and financial proposals are submitted. He also said that the process comprises two main parts among other processes, which are the licence approval process that is very technical and the concession documents which dictate what obligations the company is mandated to fulfill. In March 2012, OCM announced that they had entered into an agreement to acquire Citadel Group—operators of I95.5FM, Red 96.7FM and Hitz 107.1FM. OCM is the parent company of Caribbean Communications Network (CCN) that owns Express and TV 6. It is a public company and is traded on the T&T Stock Exchange.


Source:
Trinidad Guardian
Tuesday August 28, 2012

http://www.guardian.co.tt/business/2012-08-27/ocm-control-citadel-within-four-weeks