Aster sale price questioned

11 Apr 2012

The Central Bank of the Dominican Republic has been asked to explain its decision to accept a bid for cable operator Aster Comunicaciones that was USD17 million below the estimated valuation. According to a report from NexTV LatAm, the Dominican Alliance Against Corruption and the Justice and Transparency Foundation are unhappy that Aster was sold at auction to Consorcio Energetico Punta Cana-Macao (CEPM) for USD27 million when auditing firm KPMG had previously estimated its value at USD44 million. Aster has been under the control of the country’s Central Bank since 2009; it had previously been owned by collapsed banking group Baninter. Besides CEPM, local telcos Codetel, Tricom and Wind all took part in the auction; none of these have raised any concerns over the sale process.

Dominican Republic, Aster Comunicaciones