CWC completes $750 million sale of CTM in Macau
14 January 2013 | Kavit Majithia
Cable & Wireless Communications has agreed to sell off its controlling state in Macau’s largest telecoms company CTM to Chinese state owned industrial group Citic Telecom International.
The deal, worth $750 million, will give Citic almost complete ownership of the Macau Group, after it also agreed to acquire a 28% stake from Portugal Telecom.
CWC formerly held a 51% stake in the group.
Citic already owned a 20% stake in CTM, and the operator is Macau’s only fixed-line provider and mobile phone group.
CWC’s divestment marks the end of the company’s business restructuring, which has been focussed on the Caribbean and Central America.
Last month CWC completed the sale of its Monaco & Islands division to Batelco for $680 million, meaning most of its operations will be primarily in the pan-American region.
Tony Rice, chief executive CWC, commented on the CTM’s successes since Cable & Wireless became a founding shareholder in 1981, which he believes, was reflected in Citic’s valuation.
“As an existing shareholder, Citic Telecom knows CTM well and we’re confident it will continue to operate the business successfully,” he said. “We will be a focussed pan-American regional operator, and we intend to pursue new growth opportunities, both organic and inorganic in this region.”
It is expected CWC will use the gains to pay back its debt and pursue new acquisitions in its core markets.