Serious Valuation Doubts Hang Over Speednet Deal
How much is Speednet really worth, and has BTL seen enough financial information to know? That remains one of the biggest concerns surrounding the proposed acquisition. Today, Chairman Markhelm Lizarraga confirmed that BTL reviewed one year of Speednet’s audited financial records, along with three independent valuations, with a fourth still pending. But many continue to ask whether one year of audited financials is enough to determine the company’s true value. Lizarraga says BTL’s approach follows international standards.
Markhelm Lizarraga, Chairman, BTL
“We have received three independent valuations so far on the company. Management did its own valuation. Moore Belize did its valuation and the Brazilian company did its valuation and the system we are looking at right now as we continue with the due diligence process is that when we have control of the company we are going to have another independent professional valuation to confirm, during the process, that what the seller is saying is true.”
Paul Lopez
“How many years of financial records from Speednet have been reviewed or audited?”
Markheim Lizarraga
“Remember what we received is one year of audited financial records from the company. Why, because it tells us what they have now. We are able to see through our switches, our interconnection, how many customers they have that comes over the switch because it is interconnected. We are able to say that you as a customer you are valued to us so much. We are able to say who is prepaid and who is postpaid. And we know that our RPO per different type of customers are so much dollars. So we are able to calculate.”
Paul Lopez
“The social partners argue that one year’s financials is not enough that in a standard business transaction like this what would be sufficient it atleast five years of financial records.”’
Markhelm Lizarraga
“This transaction and the methods used are different. In this industry it is internationally accepted that you can use this standard.”
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