Chinese buyers never examine company’s books
Luncheon somersaults on sale of GT&T 20% shares…
Cabinet Secretary, Dr. Roger Luncheon said that he erred when he reported to the press on April 5, last that Government’s 20 per cent shares in Guyana Telephone and Telegraph Company (GT&T) followed an investigation and discussion by the Asian firm with the management of the telephone company.
His explanation came during an address to members of the media at his weekly press conference at Office of the President yesterday.
“I stand corrected. Those efforts in establishing the shares and the value were not taken in conjunction with GT&T management, but with resort to publicly available GT&T financial reports and the audited statements.”
He said that the Asian firm did not have any engagement or communication with the management of GT&T pertaining to its due diligence study in settling the value of the 20 per cent shares.
Dr Luncheon had announced that the government decided on a proposal made by a Hong Kong-based company to buy the shares for US$30M.
The money, he said, will be paid in two installments– US$25M upfront and the remaining US$5M to be paid over the course of two years.
Up until the sale, the government was receiving from GT&T, an annual dividend of US$2.5 million. Dividends will more than likely be used to pay the $5M installment.