Millennium International Ltd. has agreed to sell its Bahamian subsidiaries in a merger agreement with KPMG Bahamas for "anticipated proceeds'' of $3,147,500 -- of which $112,500 has been received.

Millennium owns Digital Systems (Bahamas) Ltd. and Internet (Bahamas) Ltd. The company said that the proceeds of the sale, less reserves for anticipated expenses until all obligations of the company are met, will be distributed to shareholders immediately upon its receipt from the Bahamas, subject to a BSX five day regulatory notice period.

Millennium chairman William J. Midon said, "After analysing the economic, political and regulatory environments in the Bahamian communications industry, as well as the additional capital requirements of our Bahamian subsidiaries, the board determined that divestiture at this point would capture maximum value for our shareholders.

"Through the efforts of Millennium's subsidiaries, and their exceptional management teams and staffs, premier communications, network and Internet service providers have been established both in Bermuda and the Bahamas. This will benefit all the people of these two countries.'' On December 21, Millennium, which sold the Bermuda Internet service provider, Logic Communications, to the Bermuda Telephone Co. Ltd. for $8 million, paid shareholders another $2.50 a share.

Millennium obtained shareholder approval in June to cease operations and begin distributing the real value of the company's net worth to shareholders.

The management thought the bulk of the distribution could occur within a year.

The $2.50 a share pay out, brought the distribution total to date to $7.50 a share or $10.65 million.