JT’S private-equity-backed purchase of Manx Telecom has received its final regulatory approval, with only some administrative processes to go through before the £500m deal is closed.
Last week, the UK government backed the plan, with the minister with responsibility for national security, the Chancellor of the Duchy of Normandy, endorsing the sale.
This was the last significant hurdle to overcome before JT, which has teamed up with Jersey-based CVC Capital Partners, can acquire the Isle of Man’s main telecommunications company, which is owned by investment firm Basalt Infrastructure Partners.
Announcing the proposed deal last October, which was agreed by Manx Telecom, JT acting chair Joe Moynihan said that the purchase was “a bold step towards shaping the future of connectivity across the Crown Dependencies”.
He added: “By bringing together two strong, locally rooted and community-focused businesses, we’re creating a platform that can unlock new revenue streams, drive innovation, and reinvest in the digital infrastructure that underpins our vital economies.
“This partnership positions us to compete on a global stage while ensuring that the benefits flow back into our islands, supporting sustainable growth and prosperity for years to come.”
The sale is being backed by CVC DIF, the dedicated infrastructure investment strategy of global private markets manager CVC Capital Partners.
Taxpayer-owned JT Group will run Manx Telecom and have a 45% stake in the business, with CVC owning the other 55%. The deal will almost double the size of JT, which currently has around 500 staff. Manx Telecom has about 400.
CVC Capital Partners is perhaps best known for its connection with sport: it previously owned a controlling interest in Formula One and currently has investments in the French and Spanish professional football leagues, Premiership Rugby, Six Nations, Women’s Tennis Association, and Volleyball World.
Speaking to the JEP last year, JT chief executive Daragh McDermott said that the purchase was the most significant event in the company’s 137-year history.
He said: “At the moment, JT has a scale issue: we invest an awful lot of money in technology, but we can make more use of that. There are two ways of doing that: you can spread geographically, or you can get customers to start using more and more of it.
“With this deal, we can make much greater use of our technology to extend it into the Isle of Man and use our infrastructure to run the networks there.
“The intention is to create a Crown Dependency telecom fabric from which to grow business within the Crown Dependencies, but also drive traffic through it as well.”
