Telefonica Sells Manx Telecom to Private Equity Groups
Published on: 6th Jun 2010
Note -- this news article is more than a year old.
Telefonica has sold is small Isle of Man subsidiary Manx Telecom to a private equity consortium made up of CPS Partners and HgCapital for £158.5 million (US$229 million). The transaction is expected to close at the end of June 2010 on conclusion of the notice period given to the Isle of Man Government.
Manx Telecom offers the full range of fixed line, mobile and data services to consumers and businesses. The company employs 300 people and reported revenues of £69 million, with OIBDA of £25 million, in the year ended 31 December 2009.
The cellphone network operated by Manx Telecom has been used by Telefonica O2 as an environment for developing and testing new products and services prior to wider rollout. In December 2001, the company became the first telecommunications operator in Europe to launch a live 3G network. In November 2005, the company became the first in Europe to offer its customers an HSDPA (3.5G) service.
Commenting on the announcement, Manx Telecom Managing Director, Chris Hall, said, "This is very positive news for Manx Telecom, its customers, its employees, and for the Isle of Man. Manx Telecom is a strong, profitable, and successful company, one with an excellent track record, and a great future. We are delighted that CPS Partners and HgCapital have chosen to make this significant investment in Manx Telecom, and in the Manx economy. This is a huge endorsement of our track record in building a world class company, and a vote of confidence in the future of the business. This acquisition is characterised by an enormous amount of goodwill on both sides, and it is particularly pleasing that, as part of the deal, staff will be given the opportunity to own a part of the business in which they work so hard, and so well."