JT’s private equity partner in its £500m acquisition of Manx Telecom was its main rival vying to buy the teleco until the two decided to team up to seal the deal, it has been revealed.
JT’s recently departed chief executive Daragh McDermott – who led the taxpayer-owned firm for five years before deciding to step down last month after securing its biggest ever purchase – said on Wednesday that Jersey-based CVC Capital Partners also had its eyes on the Isle of Man business.
Speaking to the Chamber of Commerce, Mr McDermott said that JT had initially tried to buy Manx Telecom on its own but had failed to reach an agreement with the former’s owner, Basalt Infrastructure Partners.
During that process, he had learnt that CVC was the other runner in the race, but after meeting each other, it transpired that both sides were willing to work together to get the purchase over the line.
JT Group now owns 45% of Manx Telecom with CVC having the other 55%; however, JT will oversee the integration and management of the combined business on a day-to-day business.
It will make it the biggest telecoms business in the Crown Dependencies; with JT now providing communications services to all public-owned facilities, including schools, hospitals and government buildings in the three islands.
JT is already in the process of moving one of its two ‘core networks’ in Jersey to the Isle of Man. Also, it is now the owner of a managed services and ‘Internet of Things’ business.
Reflecting on his 26 years with JT, Mr McDermott told the July Chamber lunch that there had been several major challenges – including the firm being fined by the regulator for failing to maintain 999 emergency services and having to strip out all Chinese-made kit from its network because of security concerns.
However, he said he was particularly proud of being involved in the 2021 fibre-optic rollout to every property in Jersey and driving through the Manx deal.
