CWC sells African satellite business
Cable & Wireless Communications’ (CWC) subsidiary Monaco Telecom has sold its controlling stake in failing African VSAT enterprise business Afinis Communications to fibre and satellite provider SkyVision for $3.3 million.
Afinis made a pre-tax loss of $24.3 million in the financial year ended March 2012 and has gross assets valued at $16.9 million.
The company offers satellite communications services to corporate customers in the oil, gas, mining, banking and telecoms industries and is expected to boost SkyVision’s scale and market presence in Africa.
CWC said that proceeds from the sale will be used to generate working capital, and that the transaction would not have a material impact on the group.
“The sale of Afinis represents another step in reshaping the Group and ensuring our portfolio is aligned to our wider strategic priorities,” said Tony Rice, CEO of CWC.
Afinis was formed through the combination of African telecoms businesses Divona and Connecteo in March 2011 and has operations in Algeria, Benin, Burkina Faso, Cameroon, Guinea and Niger.