Telecoms firm KeyTech has bought a TV firm in Cayman — and sold off its stake in BTC for $30 million.

KeyTech’s subsidiary WestTel Ltd (Logic Cayman) has bought up British Overseas Territory Cable & Telecommunications Ltd, (BOTCAT) which owns Cayman firm WestStar TV and also holds a stake in Bermuda’s CableVision.

The move means KeyTech will now have a controlling interest in CableVision and own WestStar TV outright, as well as becoming the biggest provider of subscription TV in the Caymans.

KeyTech CEO Lloyd Fray said: “The sale of BTC and the acquisition of BOTCAT are transformational transactions for KeyTech.

“We will now have the ability to offer superior triple-play services, which are telephone, internet with access and television, in both Bermuda and Cayman.”

And he added that the CableVision network could be expanded to offer more high speed broadband services, as well as offer better TV services through its internet protocol TV platform.

Mr Fray added: “Likewise in Cayman this acquisition will position Logic as the largest provider of subscription television while they continue to build their fibre to the home network and convert customers to high speed broadband and internet protocol TV.”

And he said: “In both jurisdictions, Logic has built a reputable corporate data business that offers robust and reliable data solutions for the corporate market.”

The acquisition will be financed through debt and equity, with KeyTech taking on nearly $70 million in debt and issuing more than 2.4 million KeyTech shares to BOTCAT.

The money from the BTC sale includes $25 million in cash and $5 million in deferred debt, with the cash being used to pay down KeyTech’s existing debt.

KeyTech also yesterday issued more than 661,000 common shares at par value of 25 cents, fully paid.

The stake in BTC, sold at below book value, has been bought by Bermuda-based investment firm Barrie Holdings.

New BTC executive chairman Roy Graydon said: “Bermuda is a unique market filled with incredible potential, making the decision to invest in it an easy one.

“We will continue to upgrade local infrastructure and ensure it exceeds the expectations of our customers.”

BTC CEO Eric Dobson, who will continue to manage the firm, added: “Operating as an independent entity positions BTC to more effectively compete in the Bermuda telecommunications market.

“Providing exceptional customer service and launching new products is on the agenda for the immediate future.

“This is an exciting time for the company and the local telecommunications marketplace as a whole and we look forward to the challenges ahead.”