O’Brien set to double stake in Digicel

Irish telecoms founder Denis O’Brien is on track to double his equity stake in Digicel Group to about 20 per cent, buoyed by improving financial performance at the Caribbean-focused operator and a rebound in telecoms sector valuations, according to The Irish Times.

Despite renewed attention on ownership, Digicel has declined to comment on any prospective changes in shareholding.

“We will not be providing comment at this time,” Ana Rua, a spokesperson for Digicel Group, told The Gleaner.

The increased stake in the group comes as O’Brien holds financial warrants issued by Digicel which gave him the right to purchase company shares at a predetermined price within a set timeframe, The Irish Times reported.

O’Brien, who once controlled the group, lost majority control during a sweeping debt restructuring completed in early 2024. Since then, a consortium of bondholders led by PGIM, Contrarian Capital Management and GoldenTree Asset Management controls the group. It followed a deal that converted about US$1.7 billion in debt to equity, and in the process reduced the debt servicing which eased pressure on cash flows.

Reduced leverage, tighter cost controls and steady demand for data services have improved credit metrics, while rising its valuation among listed peers such as América Móvil and Liberty Latin America.

Founded in Jamaica in 2001, Digicel emerged under O’Brien’s leadership as one of the Caribbean’s most disruptive mobile entrants, challenging entrenched incumbents with aggressive pricing and network roll-out. From its Kingston base, the company expanded rapidly across the Caribbean, Central America and the Pacific, building a footprint in more than 30 markets at its peak. O’Brien served for years as executive chairman and was the driving force behind Digicel’s expansionary strategy, investing billions of US dollars in spectrum, towers and undersea cables.

Analysts note that even at 20 per cent, O’Brien would remain a minority shareholder, with ultimate control resting with creditor-owners who are widely expected to seek an exit once valuations and market conditions allow. Still, his continued presence is viewed as important, given his deep relationships with regulators and governments across the Caribbean and Central America, where policy alignment is critical to telecoms operations.

neville.graham@gleanerjm.com