C&W Comms Sells Monaco and Islands Division to Batelco for $680 Million
Published on: 3rd Dec 2012
Note -- this news article is more than a year old.
By: Ian Mansfield
UK based Cable Wireless Communications (CWC) has agreed to sell the majority of the businesses within its Monaco Islands division to Bahrain's Batelco for USD680 million.
CWC will sell its entire shareholdings in its businesses in the Maldives, Channel Islands and Isle of Man, the Seychelles, South Atlantic and Diego Garcia as well as a 25% shareholding in Compagnie Monegasque de Communication SAM ("CMC"), the company which holds CWC's 55% interest in Monaco Telecom.
CWC and Batelco have also entered into certain put and call option arrangements over CWC's remaining 75% interest in CMC to sell the remaining stake within a year of competing the current transaction.
The company said that the sale fits into plans to reduce its geographic spread, and focus on the Central American and Caribbean region, as well as increasing its financial flexibility.
CWC will continue to operate the Monaco Telecom business in partnership with the Principality of Monaco as co-shareholder.
As a result of the sale, the Group's net debt position will be reduced from US$1,588 million as at 30 September 2012 to approximately USD937 million on a pro forma basis, implying proportionate net debt / EBITDA of 1.8x (for the 12 months to 30 September 2012).
Tony Rice, CEO of Cable & Wireless Communications, commented: "The disposal of the Monaco & Islands portfolio is consistent with our objective of building a growth- driven, Pan-America focused business. The Monaco & Islands portfolio is a premium telecoms business and we are pleased to have agreed a deal that achieves an attractive value for our shareholders."
The consideration is subject to normal post-completion cash, debt and working capital adjustments. In addition, owing to the size of the transaction relative to the size of the Company, the transaction constitutes a Class 1 transaction under the UK Listing Rules and is therefore conditional upon the approval of CWC shareholders.