2 days ago
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The proposed acquisition of Speednet Communications Limited by Belize Telemedia Limited has undergone an independent review by Moore Consulting in Belo Horizonte, Brazil. Marcus Lindgren, who headed the exercise, was contracted by Moore Belize to review the procedures and methodologies used in the valuations of both Smart and BTL. Lindgren told Love News exclusively that the review represents an initial step in the wider takeover process and is not, by itself, a final approval of the acquisition. He explained that his firm brings several decades of auditing and valuation experience. Its work has included the telecommunications, technology and biotechnology sectors, which, despite their differences, require similar valuation and assessment methodologies. Lindgren explained what the team was contracted to examine and the elements reviewed during the exercise.
Marcus Lindgren, Managing Partner, Moore Consulting Belo Horizonte Brazil: “That valuation is a step, mostly the first step of any kind of merging acquisition operations. Moore Belo Horizonte was engaged in order to review if the methodology was properly used by Moore Belize if they follow the rules from AICPA, that is the American Institute for that will define some methods that are applicable for valuation and we had to check if Moore-Belize had used this methodology properly. That was basically our responsibility in this engagement. From my point of view as a reviewer of the procedure what I can reaffirm that I have already informed this in my certificate is that Moore Belize runs the procedure as it is defined by the methodology. Okay ? So what I can assure you is that the methodology was properly used. When I checked the information used by Moore Belize, Mr. Reynaldo and his team, It seems to me that was within the rules and what was enough to perform the methodology. They used inside information from Speednet, Speednet provided the managing and finance information required to perform the valuation and also Moore Belize has hired a marketing research company in order to bring more information from the outside environment of Speednet and BTL.”
The exercise focused on the procedures, assumptions and methodologies used to arrive at the companies’ valuations. It was intended to determine whether the approaches applied were appropriate and whether the conclusions were reasonably supported by the information reviewed. Lindgren also discussed the team’s findings and what they mean for the proposed acquisition. He noted that despite this evaluation of procedures, the other matters of due diligence would be the onus of BTL.
Marcus Lindgren, Managing Partner, Moore Consulting Belo Horizonte Brazil: “What Moore Belo Horizonte has viewed is the procedure. As far as I had the opportunity to assess the procedures I can assure you that the procedure was okay and was inside what we require to support a valuation procedure.”
While the review forms part of the due-diligence process, the proposed takeover must still proceed through the remaining corporate, legal and regulatory stages. /
English (US) ·