(Jamaica Gleaner) Denis O’Brien is expected to give up majority control of Digicel Group as part of a restructuring deal with creditors that will eliminate US$1.8 billion of the company’s debt.
Under the recapitalisation plan, O’Brien, who is the company’s founder and chairman, will reportedly retain a minority stake in Digicel and remain a director.
Digicel, which is headquartered on the Kingston waterfront, affirmed in a statement that the founder would also remain a shareholder, but did not disclose how much of the business he would still own.
The transaction is still being worked through, but in a statement issued by Digicel, O’Brien said the deal under consideration was the best outcome for the two-decade business that grew its footprint from its sole market in Jamaica in 2001 to more than 30 now.
The company’s debts currently amount to about US$4.6 billion.
The agreement for the debt to equity swap was reached with a group of creditors that hold 50 per cent of Digicel’s debt.
