Burbank-based Shamrock Holdings, the private investment company of the Roy E. Disney family, has agreed to acquire the Guam Telephone Authority for $150 million (€122 million).
The deal includes $140 million to be paid in cash, and a $10 million promissory note payable in eight years, according to a statement.
GTA will become part of Teleguam Holdings, which itself is an indirect portfolio company of the Shamrock Capital Growth Fund. GTA, the last government-owned local exchange carrier in the US, provides fixed line and wireless telecommunications services to the residents of Guam. The authority has approximately 65,000 telephone access lines and cellular assets as well, the statement said.
The transaction is the culmination of a multi-year privatisation effort by the government of Guam, and will allow GTA to offer new services currently prohibited because of its government status.
Shamrock Holdings was set up in 1978, and has invested more than $1.5 billion worldwide, which includes approximately $600 million in media, entertainment, technology and communications transactions. Shamrock generally makes smaller minority investments, and some of its current portfolio companies include NETGEAR, PRN Corporation, Portal Player and Triad Broadcasting.