Attention Business Editors:
360networks completes acquisition of GlobeNet
All figures in US dollars
VANCOUVER, June 21 /CNW/ - 360networks inc. today announced the
completion of its $1 billion acquisition of GlobeNet Communications Group
Limited.
Final approval from the United States Federal Communications Commission
for the transfer of cable landing licenses and from the Bermuda government
paved the way for the closing. GlobeNet shareholders approved the sale in May.
GlobeNet shareholders will receive 2.51 subordinate voting shares of
360networks for each GlobeNet common share for a total of 47.3 million shares
of 360networks common stock. Based on the anticipated number of 360networks
outstanding shares, GlobeNet shareholders are expected to own about 5% of
360networks. In addition, GlobeNet will retain $400 million of existing debt.
Based in Bermuda, GlobeNet is installing the first independent sub-sea,
fiber optic network between North and South America. Formerly Atlantica-1, the
28,000-kilometer (17,400-mile) network is being renamed 360americas. The first
leg of the northern network ring linking the United States, Bermuda and Brazil
will be ready for service in September. The remainder of the ring linking
Brazil to Venezuela and the United States will be completed by February 2001.
A central ring from Fortaleza, Brazil to Rio de Janeiro with a terrestrial
network extension to Sao Paulo is also scheduled to enter service in February
2001. A southern ring connecting Rio de Janeiro with Buenos Aires will be
completed by the end of 2001.
"This is a very important acquisition for us as it expands our
international network and enables us to become the first company to provide
seamless broadband connections between the Americas and Europe," said Greg
Maffei, president and chief executive officer of 360networks.
"We look forward to expanding and strengthening our fast growing
360networks team with GlobeNet staff, who will help us to deliver bandwidth
and co-location services worldwide," Maffei added.
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