Telecoms firm KeyTech is to suspend it dividend payments, the company revealed today.

The decision covers dividend payments for the quarter which ended last month and the quarter that ends in December.

A spokesman for the firm said the decision was due to the purchase of WestStar TV in the Caymans and taking a controlling share in Bermuda’s CableVision.

He added that the decision “was not taken lightly” and reflected the company’s need to “align and integrate the various business strategies.”

KeyTech offloaded the Bermuda Telephone Company for around $30 million to help pay for the Cayman acquisition.

The spokesman said: “Unlocking the full value of these transactions is the primary focus of the group for the remainder of the financial year and we expect this transformation will position us well for the future.”

And he added: “The board concluded that it is imperative that the businesses have access to any required funding necessary to achieve these synergies for the initial six-month period, post transactions.

“These transactions reflect our commitment and the importance of improving the service offerings of all subsidiaries and ensuring that we have access to the right technology and infrastructure for continued sustainability and future growth.

“After months of tireless and challenging work from both management and the board that spanned two jurisdictions, which included seeking approval from and negotiating with governments and regulators, we have achieved the desired outcome.”

KeyTech also announced that its annual report for the financial year that ended in March will be delayed “due to the complexities around the financial reporting requirements for these transactions”, but is expected to be released at the end of this month.

The annual general meeting of shareholders is scheduled for mid-November.