WALL, N.J.-Centennial Communications Corp. sold its 51-percent interest in its Jamaica wireless business Centennial Digital Jamaica Ltd. to partner Oceanic Digital Communications Inc. The Jamaica business includes an 800 MHz license and a CDMA network in and around the Kingston area covering 2.6 million potential customers.
Centennial also said it entered a definitive agreement to sell its 60-percent interest in Jamaican Internet service provider Infochannel Ltd.
Terms of the transactions were not disclosed, but Centennial said neither will cause a material gain or loss.
Last month, Centennial announced a write down of its Jamaican assets, as well as certain non-Caribbean undersea fiber optic cables totaling $34 million.
“While our Jamaica operations had long-run growth potential, we believe these transactions are in the best interest of shareholders,” said Michael Small, chief executive officer of Centennial.
Small said the deals will reduce the company’s consolidated debt levels by $45 million, eliminate the need for additional capital investments and end the absorption of earnings before interest, taxes, depreciation and amortization losses. In addition, Small noted the deal will also allow it to focus on its core operations in the United States, Puerto Rico and the Dominican Republic.
