Cable & Wireless Communications to sell Monaco & Islands division

Monday, December 3 8:17 am

LONDON ? Cable & Wireless Communications Plc announced today that it has reached an agreement with Batelco Group to sell the majority of the businesses within its Monaco & Islands division for an enterprise value of $ 680 million.

Under terms, CWC will divest its entire stakes 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.

Subject to the satisfaction of necessary regulatory and other conditions, including approval from CWC shareholders, Batelco will take control of each of the majority-owned business units upon Completion, which is expected to take place by the end of CWC?s current financial year. CWC will continue to operate the Monaco Telecom business in partnership with the Principality of Monaco as co-shareholder.

The cash proceeds arising from the sale will be used to reduce the company?s net borrowings and increase its financial flexibility. As a result of the disposal, the net debt position will be reduced from $ 1.59 billion as at 30 September 2012 to $ 937 million.

CWC and Batelco have also entered into certain put and call option arrangements over CWC?s remaining 75% interest in CMC. The options will enable CWC to sell, and Batelco to purchase, the controlling stake in Monaco Telecom for an additional consideration of $ 345 million.

These options can be exercised within 12 months of completion of the Disposal, subject to obtaining necessary regulatory and other consents, including the approval of the Principality of Monaco. If the necessary consents are obtained and either option is exercised, the completion of the second stage of the transaction would increase the total consideration to $ 1 billion. If the necessary consents are not obtained, CWC and Batelco have agreed a further option arrangement which enables the return of the 25% stake in CMC (originally transferred to Batelco) back to CWC for a consideration of $ 100 million.

The Disposal accelerates the delivery of CWC?s strategy to reshape its business, reduce its geographic spread, and focus on the Central American and Caribbean region, as well as increasing the Company?s financial flexibility. ? Source: Cable & Wireless Communications Plc.

Source: http://thudderwicks.com/2012/12/cable-wireless-communications-to-sell-monaco-islands-division/

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