BELIZE CITY – In a significant endorsement of market consolidation, the Belize Business Bureau has publicly championed Belize Telemedia Limited’s (BTL) planned acquisition of competitor Speednet (SMART). The Bureau characterized the proposed merger, announced February 3, as “a sound economic business proposal” poised to deliver substantial national and shareholder benefits.
The Bureau’s analysis indicates BTL’s annual revenues have plateaued at approximately $32 million. The acquisition is framed as the essential catalyst for breaking this stagnation and securing the company’s long-term viability. Projections suggest the consolidated entity could achieve profits soaring to $50 million within a three-year horizon, with profit margins dramatically expanding from below 10% to over 20% in just two years.
Shareholders are positioned for considerable gains, with earnings per share forecast to surge from under thirty cents to more than one dollar over a five-year payback period. This would effectively double dividends, a critical development for institutional investors like the Social Security fund.
Addressing potential labor concerns, the Bureau emphasized that the acquisition’s due diligence must incorporate robust worker protections, including severance agreements, arbitration mechanisms, drawback rights, and non-compete clauses. An ancillary proposal for a ‘data-free Sunday’ was highlighted as a measure to aid vulnerable demographics, including the elderly, unemployed, and students.
The Bureau’s position hinges on a stark economic rationale, concluding that “competition destroys profits.” It argued that the existing rivalry between BTL and SMART has mutually diminished both companies’ incomes. The statement ended with an appeal for objective analysis, urging stakeholders to examine the proposal “more closely and with less prejudice.”