The government will seek further talks with Manx Telecom’s new owner to get assurances over its plans for the future.

Manx Telecom’s sale to investment firm Basalt Infrastructure Partners in a £255 million deal was finalised yesterday (Thursday), having first been announced two months ago.

Chief Minister Howard Quayle said: ’Representatives of the Isle of Man Government will be meeting with Basalt Infrastructure Partners to discuss their plans, including their planned capital investments, and to better understand any other long-term aspirations.

’Further detail will therefore be sought on the new owner’s short and medium-term plans.’

Telecommunications were critical to the island’s economic success, he said, but he conceded that the government might not have the power to prevent asset-stripping by a future owner.

The Chief Minister gave a statement to the House of Keys this week following a request from Rob Callister (Onchan).

Mr Callister asked what the government could do to prevent any sell-off of Manx Telecom’s assets and infrastructure and to ensure that ’cash will not be swapped for debt in the future’.

Mr Quayle admitted: ’Obviously we have got to monitor this. I know the profit margins of the company are monitored and going forward we will just have to keep an eye on it.

’But we have not got the power to dictate to a business what it can and cannot do from a debt leveraging position, so that is just something we will have to monitor, unless Tynwald Court was to decide otherwise.’

Earlier, he said that high quality telecommunications were a ’must’ for the island.

The government had already held talks, following the announcement of the deal in March.

Mr Quayle said: ’From our conversations with both parties they have been very positive about the sale.

’Both have issued statements that they intend to support the company through its next phases of capital investment, including the rollout of Fibre To The Premises and 5G.’

He said these were ’vital’ elements in the government’s telecommunications strategy.

After the deal was sealed yesterday, Gary Lamb, Manx Telecom’s chief executive officer, said ’Basalt’s status as a committed, long-term infrastructure investment firm with a strong track record of investing in strategic infrastructure assets, means that the acquisition is a massive vote of confidence in Manx Telecom and in our future.

’It is great news for our customers, employees, and the Isle of Man - and as such represents the start of an exciting new era for the business and the island.

’With the financial strength and experience of our new owners behind us Manx Telecom is in an even better position to invest in communications technology infrastructure. Most significantly, we are now in a much stronger position to invest in FTTP and 5G.’

Manx Telecom employs about 300 people.

Manx Telecom says it has invested more than £110m in the island in the last 12 years. The company owns all the island’s copper network and the majority of the island’s growing fibre network.

Basalt says it will work with Manx Telecom bosses to invest in technology to deliver improved service and efficiencies to the business.’