UPDATE ON DIGICEL PACIFIC

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As a Digital Operator, Digicel is in the business of delivering powerful digital experiences 1440 minutes of each day to customers that's every minute, all day, every day.

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PR NewswirePR Newswire
Retrieved on: 
Monday, April 4, 2022
Information
Tags: 
Regulation, PlayStation 4, Music, Investment, Regulate... G Funk Era, Foundation, SEC, Better Together, BIP, U.S. Securities and Exchange Commission, Review, Intention, Digicel, News, LTE, Trinidad and Tobago, Security (finance)
Geotags: 
JAMAICA, NEW YORK, UNITED STATES OF AMERICA, PAPUA NEW GUINEA, CENTRAL AMERICA, HAITI, UNITED STATES
Organisation: 
DIGICEL GROUP LIMITED
Summary
Key Points: 
  • As a Digital Operator, Digicel is in the business of delivering powerful digital experiences 1440 minutes of each day to customers that's every minute, all day, every day.
  • Serving consumer and business customers in 32 markets in the Caribbean, Central America and Pacific, its investments of over US$7 billion and a commitment to its communities through its Digicel Foundations in Haiti, Jamaica, Papua New Guinea and Trinidad & Tobago have contributed to positive outcomes for over 3 million people to date.
  • With its Better Together brand, Digicel is making a promise of simply more to customers and communities and its 7,000 employees worldwide work together to make that a powerful reality day in, day out.
  • We do not undertake any obligation to update or review any such forward-looking information, whether as a result of new information, future events or otherwise.


UPDATE ON DIGICEL PACIFIC

KINGSTON, Jamaica, April 4, 2022 /PRNewswire/ -- On March 29, 2022 the Parliament of Papua New Guinea approved an amendment to the Income Tax Act which introduces a new Additional Company Tax ("ACT") on the telecommunications and banking sector. The ACT imposes a one-time PGK 350 million (approximately US$100 million) tax liability on Digicel (PNG) Limited with a further penalty of a further PGK 50 million (approximately US$14 million) for non-payment.

Digicel Group Limited Logo

 

Introduction of the new arbitrary, company-specific tax Act on March 25, 2022 without any consultation is perplexing not just for Digicel, but also for the Papua New Guinea economy given the reputational and credit rating implications of this sudden, bizarre and unprecedented tax. Under the ACT the disputed tax was payable on March 30, 2022

At a meeting last week between Denis O'Brien and Prime Minister Marape and two of his regional Governors, the Prime Minister assured Digicel that the new tax would not proceed and Digicel is now engaged in discussions with the Papua New Guinea Government and other relevant stakeholders to ensure this commitment is honoured.

This matter requires urgent resolution given its implications for the sale of Digicel's Pacific operations to Telstra but also given the knock-on consequences for all foreign direct investment exiting Papua New Guinea and the wider reputational and credit rating implications for Papua New Guinea internationally.  In parallel with these discussions Digicel is also considering its legal options in the event that this discriminatory tax is not removed.

These matters will affect the timing of the previously announced sale of Digicel Group Holdings Limited's wholly owned subsidiary Digicel Pacific Limited ("DPL") to a wholly owned subsidiary of Telstra Corporation Limited. Prior to the introduction of the ACT, all but one of the required regulatory approvals to complete the transaction had been obtained.

Digicel will provide a further update in due course.

 

For Reference:

Antonia Graham

Pat Walsh

Head of PR

Murray Group

T: +1 876.564.1708 (Jamaica)

T: +353.87.2269345

E: [email protected]

E: [email protected]

 

About Digicel
As a Digital Operator, Digicel is in the business of delivering powerful digital experiences 1440 minutes of each day to customers – that's every minute, all day, every day.

Through its world-class LTE and fibre networks, together with its suite of 8 apps spanning sports (SportsMax), music (D'Music), news (Loop), local radio and podcasts (GoLoud), TV streaming (PlayGo), enhanced messaging and marketplaces (BiP), cloud storage (Billo) and self-care (MyDigicel app), Digicel is the only operator in its markets that can deliver that.

Serving consumer and business customers in 32 markets in the Caribbean, Central America and Pacific, its investments of over US$7 billion and a commitment to its communities through its Digicel Foundations in Haiti, Jamaica, Papua New Guinea and Trinidad & Tobago have contributed to positive outcomes for over 3 million people to date.

With its Better Together brand, Digicel is making a promise of simply more to customers and communities and its 7,000 employees worldwide work together to make that a powerful reality day in, day out. Visit www.digicelgroup.com for more.

Forward-Looking Statements
This release contains forward-looking statements within the meaning of the federal securities laws of the United States. Certain other jurisdictions may have analogous concepts. Such forward-looking statements reflect, among other things, management's current expectations, plans and strategies, and anticipated financial results, all of which are subject to known and unknown risks, uncertainties and factors that may cause our actual results to differ materially from those expressed or implied by these forward-looking statements. Many of these risks are beyond our ability to control or predict.

Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. Furthermore, forward-looking statements speak only as of the date they are made. We do not undertake any obligation to update or review any such forward-looking information, whether as a result of new information, future events or otherwise.

Other disclosure
Our debt securities are not registered with the SEC or any other securities regulator and are not listed with any exchange. We have no intention of registering the securities in the United States or listing them with any exchange.

Certain figures in this release, including financial data, are rounded. Accordingly, corresponding calculated figures, including totals and percentage changes, may not be an exact arithmetic presentation of the corresponding figures.

Regulation G
This release contains non-GAAP financial measures as defined by Regulation G of the rules of the Securities and Exchange Commission.

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SOURCE Digicel Group Limited

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