POND ISLAND:--- TelEm Group today officially announced that a Letter of Intent signed with UTS in March this year for exclusive partnering negotiations between the two companies has expired – and will not be renewed until further notice.
In a statement dated June 26, 2014 and issued today, TelEm Group said an important contributing factor in coming to the decision, was a lack of proper response from UTS when asked for critical financial information from UTS. The company said this information was vital if it was to make a fair assessment about the potential of UTS as a viable strategic partner, but unfortunately, was not forthcoming within a specified deadline.
The following is the text of the TelEm Group statement:
"The Letter of Intent (LOI) in which TelEm Group and telecommunication company UTS agreed to a limited period of exclusive discussion to explore possible strategic partnership arrangement has expired.
TelEm Group management, along with the TelEm Group Partnering Negotiating Committee and the Supervisory Board of Directors have agreed not to renew the Letter of Intent (LOI) with UTS signed in March this year now that the period set aside for exclusive negotiations has expired.
The reason for the decision not to renew the LOI is a lack of response from UTS when asked to provide crucial information within a specified deadline. This information was required to enable TelEm Group's negotiating team to properly assess that company's potential as a viable strategic partner, but unfortunately has not been forthcoming.
The decision means TelEm Group will stop any exclusive discussions with UTS as a prospective strategic partner as envisaged in the Letter of Intent, and continue with the next phase of the partnering process.
Management will inform the Shareholder Representative that this development does not mean TelEm Group will no longer negotiate with UTS, only that the exclusive discussions guaranteed under the LOI signed with UTS, will cease, and TelEm Group can therefore continue with the next phase of the partnering process."
TelEm Group says the Letter of Intent was signed by TelEm Group and UTS in March this year agreeing to a limited period of exclusive discussion during which time both companies would more closely explore a strategic partnership arrangement and it is this limited period for talks which has now expired.
TELEM Press Release
