Canadian Withdraw from Cuba's Cellular Market

Canada's Sherritt International has sold its 40% indirect interest in Telefonos Celulares de Cuba (Cubacel) to Telefonica Antillana, a Cuban government agency. Sherritt will receive 80% of the US$43 million selling price for its Cubacel interest with the remaining 20% going to the private holder of the minority interest in the Cubacel investment. The US$43 million purchase price is comprised of an initial payment of US$10 million, which has been paid and a series of quarterly payments extending until August 2007.

Interest will be paid on outstanding amounts at a rate of 6% per annum. Sherritt's proceeds of the sale are approximately equal to its $45.1 million net book value of the Cubacel investment.

Sherritt International is a diversified Canadian natural resource company that operates in Canada, Cuba and internationally. Earlier this year, Sherritt said it would spend US$110 million to develop its oil and gas holdings in Cuba."

Posted to the site on 8th September 2003