Oceanic Takes Control of Jamaican CDMA Network

Centennial Communications says that it has sold its 51% interest in its Jamaica wireless business, Centennial Digital Jamaica to Oceanic Digital Communications, the 49% stockholder in Centennial Digital Jamaica. Centennial Digital Jamaica provides mobile telecommunications services in and around Kingston, Jamaica using CDMA technology and an 800Mhz license covering a population of 2.6 million.

In addition, Centennial announced that it has entered into a definitive agreement to sell its 60% interest in Infochannel Limited, a Jamaican Internet service provider. The Infochannel transaction is expected to close within 30 days.

In July 2002, Centennial previously announced a write down of these Jamaican assets, as well as certain non-Caribbean undersea fiber optic cables, totaling $34 million. Terms of the transactions were not disclosed but will not cause either a material gain or loss.

"While our Jamaica operations had long-run growth potential, we believe these transactions are in the best interests of shareholders," said Michael J. Small, chief executive officer of Centennial. "The sale of our Jamaican businesses will immediately reduce our consolidated debt level by $45 million, eliminate the need to invest additional capital, and end the absorption of EBITDA losses. Equally important, it now allows our talented group of associates to focus their efforts on our core operations in the United States, Puerto Rico and the Dominican Republic."'"

Posted to the site on 28th August 2002