By Dana Malcolm 

Staff Writer 

July 17, 2023 – Digicel says it will be business as usual for the next few months as it finalizes its new ownership. Irishman, Denis O’Brien, founder and longtime owner of Tele-communications giant will see his majority stake in the company slashed to between 10 and 20 percent in an effort to pay off the company’s mounting debt.

The decision comes after years of well documented debt troubles for the Jamaica based company. Owing up to $7 billion to creditors in the last few years and with the near collapse of its largest market, Haiti, in the last few months, O’Brien announced the possibility of selling off his shares early in 2023.

The Irish Times reported on June 27th that the deal has now been officially inked.

Quoting Oliver Coughlan, Digicel chief executive, they describe the deal as consensual on both parts, not a hostile takeover by any means, and a positive step forward. 

“It will continue to be business as usual during the implementation phase,” Coughlan is quoted as saying.  As for what that means for the 25 markets Digicel currently serves after the implementation phase, is not clear.

The deal is being carried out in Bermuda where Digicel filed for Chapter 15 US Bankruptcy and almost $1.18 billion of bonds will be converted to an initial 62 per cent stake in the company, for the bondholders that could eventually increase to around 90 percent.

Digicel is still a fairly young company, one founded in 2001, but enjoying incredible success early on, the company expanded rapidly over its lifetime helping to not only exponentially increase cell phone penetration and coverage in the Caribbean region but to pump millions into charitable projects.

The collapse of the Haitian market was a major blow to the company but in a candid conversation with Jacqueline Charles of the Miami Herald in March 2023, O’Brien maintained a positive outlook and was more concerned about the residents, evidenced by his frequent visits.

In fact, he was a part of the delegation headed by Andrew Holness, Jamaican Prime Minister which visited the country in March.

He told Charles, “we’re struggling but by God we’re not suffering like the population– I’m really committed to finding a way where this country can be properly compensated by the people who created the environment, which has led to where the country is today.”

O’Brien will still have a seat on the board of directors after the takeover.