CWC's controlling 51% stake, held through its wholly-owned subsidiary Sable Holding Limited, will be acquired by CITIC Telecom, which holds an existing 20% shareholding in CTM. Concurrently with the Disposal, CITIC Telecom has today announced it has agreed with Portugal Telecom to acquire its 28% stake in CTM.
At completion of both transactions, CITIC Telecom will own 99% of the Macau telecoms network..
The Disposal is a further step in CWC's strategy to reshape its portfolio, reduce geographic spread and grow its business in the Central American and Caribbean region, following the announcement of the Company's Monaco & Islands disposal agreement in December 2012. Following completion of the Disposal and the Monaco & Islands disposal CWC's operations will be primarily in the pan-America region.
The cash proceeds arising from the Disposal will be used to reduce the Company's net borrowings, increasing its strategic and financial flexibility. CWC added that the sale puts it in a strong position to be able to make investments, both organic and inorganic, in the targeted pan-America region.
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