UK Government approves sale of Manx Telecom

Chancellor of Duchy of Lancaster clears JT and CVC takeover of telecoms provider

The UK Government says a company partly owned by Jersey's government can purchase Manx Telecom.

The Chancellor of the Duchy of Lancaster has confirmed the transaction can go ahead, giving Dunlop Bidco Limited 100 percent shareholding of MT.

One of the owners of the purchaser is JT (NewCo) Limited; a subsidiary of JT Group Limited, which is wholly owned by the States of Jersey and is the telecoms operator in Jersey.

CVC DIF, which jointly controls Dunlop Bidco alongside JT (NewCo) Limited is a Dutch-registered infrastructure fund manager, which has a parent company registered in Jersey.

The proposed sale was reviewed under the UK's National Security and Investment Act due to MT's role as a critical supplier of services to UK Government departments which are in support of UK national security.

The transaction is subject to conditions, including that Manx Telecom continues to fulfil certain services provided to the UK Government, that a Cyber Security Group within Manx Telecom is established and to appoint a senior executive to oversee the group.

The Chancellor of the Duchy of Lancaster says these measures are necessary to remedy, prevent or mitigate the risks to national security in the UK.

When the deal was announced in October last year, the CEOs of both telecoms providers said the move would strengthen service offerings and digital infrastructure.