Chinese tech giant Datang Telecom Technology & Industry Group has been confirmed by a member of the Cabinet as the company that was sold government’s 20 percent shares in the Guyana Telephone and Telegraph Company (GT&T).
The sale of the shares has garnered US$30 million or $6 billion, which the government may dedicate to the development of the IT sector in Guyana.
The government, through spokesman Dr. Roger Luncheon, had announced the sale last week following Cabinet’s decision on the matter, even though he was tight-lipped about the name of the company that has made the acquisition.
The Datang Group’s offer reportedly included a proposed initial payment of US$20 million, followed by a further payment of US$10 million over ten years.
A second offer reportedly involved a down payment of US$25 million and a further US$5 million to be paid in instalments over seven years.
From all indications, the government has favoured the latter option albeit with modifications and will receive US$25M up front and the remaining US$5M will be paid over the next five years.
Asked what motivated the sale, Dr Luncheon said that US$30M is a lot of money even though the government was receiving a little over US$2M a year from the telephone company; the government had retained 20% when it sold 80% to GT&T’s parent company ATN in 1991.
In September last year, Stabroek Business had reported that the Chinese telecommunications company Datang Telecom Technology & Industry Group could be favoured by government to acquire its 20 per cent shareholding in GT&T.
Datang is one of China’s showpiece hi-tech companies, which specialises in the development, production and sale of electronic information systems and equipment. Founded in 1999, the company is reportedly managed by the state-run Assets Supervision and Administration Commission of the State Council.
Figures seen by this newspaper indicate that since 2000, when the Government of Guyana began receiving dividend payments on its shares to the end of last year, GT&T has paid over more than $6 billion in dividends.
Since 1999 too, the Government of Guyana has also received more than $35 billion in consumption, corporation and value-added taxes.
Sector analysts have said that these payments make GT&T one of the more profitable investments ever undertaken by the Government of Guyana.
Stabroek Business had also been informed that some time ago ATN turned down an offer to buy government’s shareholding in the company for US$45 million.
Datang’s product and service portfolio ranges from wireless mobile telecommunications, integrated circuit design and manufacturing, to information security. The company’s overall assets are nearly 50 billion RMB.
