Cable & Wireless Communications will sell its Monaco & Islands division to Bahrain’s Batelcom Group for US$680 million.
The sale include CWC’s 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, the company which holds CWC’s 55% interest in Monaco Telecom.
Cable & Wireless Communications said the disposal helps to focus the company on the Central American and Caribbean region, as well as increasing the company’s financial flexibility. The Group’s net debt position will be reduced from US$1,588 million as at 30 September 2012 to approximately US$937 million on a pro forma basis, implying proportionate net debt / EBITDA of 1.8x (for the 12 months to 30 September 2012).
“Batelco Group will have the opportunity to operate, in collaboration with its new business partners, communications businesses across 17 markets. This acquisition supports our strategy by adding new cash generative business clusters to our existing operations across the Middle Eastern region. We look forward to working closely with all the shareholders and management teams in the companies to ensure we continue to deliver value and innovation to customers and be recognized as market leaders,” stated Sheikh Mohamed bin Isa Al Khalifa, Batelco Group Chief Executive.
