His Majesty’s Cabinet has approved the Share Purchase Agreement (SPA) and the Shareholders Agreement (SHA) for the sale of Government Shares in Tonga Cable Limited to Digicel Tonga Limited.
The approval came after months of intense negotiations between the Government of Tonga (GoT), Digicel (Tonga) Limited (DTL), Tonga Cable Limited (TCL), and Tonga Communications Corporation (TCC),
Government of Tonga, DTL, TCL and TCC signed the respective agreements Friday. The signing ceremony was held at the Ministry of Public Enterprise and in attendance was the Prime Minister ‘Akilisi Pohiva, Deputy Prime Minister, Siaosi Sovaleni, Minister for Public Enterprises Poasi Tei and representatives from Digicel and TCC.
Upon commencement of these agreements, DTL will now obtain fully paid shares in the capital of TCL thus becoming the third shareholder of TCL alongside the Tongan government and TCC.
The agreements not only enhance the relationship of these network operators including the GoT, but it ensures that there is a much fairer and leveled playing field within the telecommunication sector of the country.
The arrangements will pave the way for Government to enable fulfilling its intention of the extending the Tonga submarine fibre optic cable network to Ha’apai and Vavau’u making broadband services available to the public at affordable prices.
Deputy Prime Minister Siaosi Sovaleni said that the agreements mark a new era for communications in Tonga specifically for Ha’apai and Vava’u to further develop sectors such as health, education and tourism through the submarine fibre optic cable network.
Photo by Government of Tonga