More news today -- ACQUISITION !!
(COMTEX) B: WORLDWIDE FIBER (360NETWORKS) TO ACQUIRE GLOBENET ACQUISI
B: WORLDWIDE FIBER (360NETWORKS) TO ACQUIRE GLOBENET ACQUISITION WILL CREATE
FIRST FIBER OPTIC NETWORK LINKING AMERICAS AND EUROPE
VANCOUVER and ST. DAVID'S, BERMUDA, Mar 13, 2000 /CNW-PRN via COMTEX/
-- Worldwide Fiber Inc., which is changing its name to 360networks,
announced today it will acquire GlobeNet Communications Group Limited,
a provider of high-capacity network services, for approximately US $600
million of 360networks common stock (subject to adjustment). The total
transaction value is about US $1 billion as 360networks will also
assume GlobeNet's US $400 million of debt.
GlobeNet operates an undersea network linking the United States and
Bermuda and is currently extending that undersea network to Brazil and
Venezuela.
'GlobeNet leads in the race to provide broadband capacity on an
advanced network between North and South America,' said Greg Maffei,
chief executive officer of 360networks. 'We expect the merged
360networks and GlobeNet to be the first telecom company to provide
facilities-based connectivity between the Americas and Europe.'
'We are delighted to join a technology leader like 360networks,' said
Jorge Escalona, president and chief executive officer of GlobeNet.
'This is a key step in enabling a seamless global network for
high-capacity network and value-added services.'
GlobeNet shareholders will receive a minimum of US $32.87 per share in
360networks common stock. Based on 360's anticipated number of
outstanding shares, the GlobeNet shareholders are expected to own
approximately 5% of 360networks. 360networks plans to offer its common
stock to the public in an underwriting in the second quarter of this
year. The actual proceeds to GlobeNet shareholders will be adjusted
based, in part, on the initial IPO share price of 360networks.
The agreement is subject to the approval of GlobeNet's shareholders.
Holders of more than 75% of the GlobeNet common stock have irrevocably
committed to vote in favor of the transaction. The agreement is also
subject to the approval of certain regulatory authorities and the
completion of 360network's IPO. The companies anticipate that the
transaction will be completed in the second half of this year.
GlobeNet is currently developing Atlantica-1, a 22,500-kilometer
undersea network linking the United States, Bermuda, Brazil and
Venezuela. The primary ring of Atlantica-1 is scheduled to enter
service by December 2000. A second submarine cable system from
Fortaleza, Brazil to Rio de Janeiro with a terrestrial network to Sao
Paulo is scheduled for service by February 2001. Another submarine
cable will be installed during the middle of 2001 to provide a closed
ring between Fortaleza and Rio de Janeiro. Alcatel, a leading
telecommunications equipment manufacturer, is designing, building and
installing the Atantica-1.
GlobeNet also owns TeleBermuda International Limited (TBI), a leading,
facilities-based Bermudian provider of international service, using
GlobeNet's current undersea fiber optic cable system connecting the
United States and Bermuda. TBI also operates a world-class network
operating center (NOC) and Internet server farm for hosting offshore
e-commerce business applications.
GlobeNet shares will resume trading on the Bermuda Stock Exchange at
8:30 a.m. Atlantic Standard Time on Tuesday, March 14, 2000.
About 360networks 360networks (formerly known as Worldwide Fiber)
offers broadband network services for telecommunications companies,
ISPs, application service providers and data-centric enterprises.
360networks is completing a technologically advanced 90,300-kilometer
(56,100-mile) network, including a fiber optic terrestrial network in
North America and Europe and undersea cables linking North America,
South America and Europe. 360networks and its predecessors have been
developing communications networks since 1988.
About GlobeNet GlobeNet Communications Group Limited is an independent
developer of international fiber-optic cable facilities. Since 1997, it
has provided international services through its wholly owned,
facilities-based subsidiary, TBI, using the company's undersea fiber
optic cable system connecting Bermuda and the United States. TBI has
captured more than 35 per cent of the market as the second authorized
provider of international service. GlobeNet is headquartered in St.
David's, Bermuda (GLOCOM on the Bermuda Stock Exchange) and has offices
in New York, Toronto and Montreal.
Forward looking statements: This document may contain statements about
expected future events and financial results that are forward looking
in nature, and, as a result, are subject to certain risks and
uncertainties. Actual results may differ materially from those
projected by management. For such statements, we claim the safe harbor
for 'forward looking statements' within the meaning of the Private
Securities Litigation Reform Act of 1995.
A registration statement relating to these securities has been filed
with the Securities and Exchange Commission but has not yet become
effective. These securities may not be sold nor may offers to buy be
accepted prior to the time the registration statement becomes
effective. This news release shall not constitute an offer to sell or
the solicitation of an offer to buy nor shall there be any sale of
these securities in any State in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities law of any such state.
The name and address of a person or persons from whom a written
prospectus meeting the requirements of Section 10 may be obtained from
Goldman-Sachs (85 Broad Street, New York, N.Y., U.S.A. 10004) or
Donaldson Lufkin & Jenrette (277 Park Avenue, New York, N.Y., U.S.A.
10172).
SOURCE Worldwide Fiber Inc.
(C) 2000 PR Newswire. All rights reserved.
prnewswire.com
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CONTACT: Michelle Gagne, 360networks, 604-648-7703,
michelle.gagne@wwfiber.com; Chris Valmassei, Optimum Public
Relations (703)
821-8637, cvalmassei@cossette.com
GEOGRAPHY: British Columbia
INDUSTRY CODE: TLS
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