CURAÇAO/PHILIPSBURG–Leading player in integrated security communications Zenitel N.V. announced on Tuesday, that it has signed a share sale agreement with the Curaçao Growth Fund (CGF) to sell 100 per cent of the shares in Zenitel Caribbean B.V.
This can only have a positive result for the B.V. as a whole and also for St. Maarten, Zenitel Caribbean Director Bert Schreuders told The Daily Herald in an invited comment.
Zenitel and its partners/clients will essentially not be affected in the short term. However, the outlook is positive given the consequent expected investment into the company’s network, services and resources, he said.
In the long term, it is also positive that the shares were sold to a local company in Curaçao, lessening any strain because of potential culture differences.
Headquartered in Curaçao, Zenitel Caribbean owns and operates the Public Safety Network in Curaçao, Aruba, St. Maarten and the Caribbean Netherlands. The network operator sells airtime on its own network. It also sells Vingtor-Stentofon products and acts as a system integrator.
In 2014, the company had an annual turnover of 4.6 million euros and a recurring Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of 1.3 million euros. At the current exchange rate of NAf to euros, CGF pays approximately 5.1 times the 2014 EBITDA in cash.
Zenitel’s Chief Executive Officer (CEO) Kenneth Dastol commented in the company’s announcement that the transaction is entirely in line with Zenitel’s strategy to divest its remaining network operations, and to focus on the further profitable growth of its Vingtor-Stentofon core business.
He said that during the discussions with CGF it became clear that they fully understood the local business needs and that, as local owners, they are well placed to add value to the company, to its customers and to its employees.
He added to be pleased that, as part of the agreement, CGF will become a member of Zenitel’s World-Wide Partner Network and will market and sell Zenitel’s Vingtor-Stentofon products, across the Caribbean and in parts of Latin-America.
In 2014, the Vingtor-Stentofon products represented approximately two per cent of the Caribbean revenue. CGF Managing Director Justus Martens said he was very pleased with the agreement: “The company has been delivering quality services and has been growing steadily over the past 10 years, and we are pleased to announce that this investment is the first investment by the newly established Curaçao Growth Fund.
“As new owners, we are committed to continue the positive trend set by the global Zenitel Group, and will support the management team with continuous hands-on, strategic support. As a local owner, we believe we can add value to the company and its regional growth strategy.”
CGF is the first private equity fund in Curaçao and was established by Justus Martens and Erik Baas, two private equity specialists with over 50 years of global experience in banking, corporate finance, accounting, corporate management and investment management.
CGF will have pension funds, banks and insurance companies in Curaçao as investors, the first and largest investor being Algemeen Pensioenfonds Curaçao (APC).
The Fund’s mission is to invest in existing, well-established local companies and to improve and grow these over time, based on additional capital injection and continuous, hands-on, strategic support of the management team.
Source: The Daily Herald All Zenitel Carib shares to Curaçao Growth Fund
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