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Corporate Services - Approved Panel Minutes - 3 July 2015

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Corporate Services Scrutiny Panel

Record of Meeting

Date:  3rd July 2015

 

Present

Deputy J.A.N. Le Fondré, Chairman Deputy S.J. Brée, Vice-Chairman Connétable C.H. Taylor

Deputy K.C. Lewis

Apologies

 

Absent

 

In attendance

Senator A.J.H Maclean, Minister for Treasury and Resources

Mr J. Shilliday, Project Director, Treasury and Resources Department Mr .G. Millar , Chief Executive Officer, JT

Mr D. McDermott, Corporate Affairs Director, JT

Mr. T. Oldham , Scrutiny Manager

 

Ref Back

Agenda matter

Action

Item 8 29.06.15

1. Possible JT and Airtel Merger

The Panel welcomed Senator A.J.H Maclean, Minister for Treasury and Resources, Mr J. Shilliday, Project Director, Treasury and Resources Department,  Mr  .G.   Millar ,  Chief  Executive  Officer,  JT  and  Mr  D. McDermott, Corporate Affairs Director, JT, who provided the Panel with a briefing on the purpose, structure of the offer, market impact/impact on  the  two  businesses,  current  status  and  outline  timetable  of  the potential merger of operations of JT and Airtel. It was agreed that a valuation report commissioned by JT, and if possible that commissioned by Airtel, plus two related reports being commissioned by the Treasury and Resources Department to evaluate the offer from the shareholder perspective an review the States ownership of JT, would be forwarded to  the  Panel  subject  to  a  relevant  confidentiality  agreement  being agreed in due course. This would be followed up by the Panel's Officer with the Department.

It was noted that should the Minister for Treasury and Resources as shareholder representative wish to formally sanction the merger, he would be required to bring a successful Proposition to the Assembly to enable to him to do so. It was not expected that all of the necessary reports to inform this decision would be completed until at least the end of July, although likely to be later. Such a decision was therefore not likely  to  be  made  before  the  final  quarter  of  2015.  In  view  of  the relatively early stage of the process, the Panel agreed that it would reconsider any work that it might undertake on the matter in due course following consideration of the aforementioned reports.

TO

Panel

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03.07.2015