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CWC and PT agree Macau sale for $1.1bn

14 January 2013

Cable & Wireless Communications and Portugal Telecom to sell Macau business to China’s CITIC Telecom

Read more: CWC Macau CITIC China Cable & Wireless Portugal Telecom

China’s state controlled CITIC Telecom International Holdings is to increase its shareholding in Macau’s telecoms operator CTM for a total of $1.16 billion.

The company, which already owns 20% of Companhia de Telecomunicações de Macau, is buying Cable & Wireless Communications’ 51% stake for $750 million and Portugal Telecom’s 28% for the rest of the sum. The deal is conditional on both parts of the transaction being completed.

Following the deal, CITIC Telecom, owned by China’s state-controlled CITIC Group — formerly the China International Trust and Investment Corporation — will own 99% of CTM. The other 1% is owned by Macau Post, which is controlled by the government of the Chinese special administrative region.

Macau, ruled by Portugal since the 1560s, became a special administrative region — the same status as nearby Hong Kong — in 1999.

The transaction means that CWC, the surviving arm of what was once the number two telecoms operator in the UK, now owns just Lime, its Caribbean fixed and mobile operations, and Cable & Wireless Panama. CWC has agreed to sell to Bahrain-based Batelco most of its Monaco and Islands business — which includes numerous small operations around the world — for an initial $680 million, with another $345 million following if the government of Monaco agrees the complete sale of Monaco Telecom.

The rest of Cable & Wireless was split off in 2010 to become Cable & Wireless Worldwide, and Vodafone bought it for £1 billion in 2012.

Tony Rice, CEO of CWC, said: "Following completion of these transactions, we will be a focused pan-America regional operator, with a strong balance sheet, and we intend to pursue new growth opportunities, both organic and inorganic, in this region."

More from GTB 
Batelco buys part of CWC's business 03 Dec 2012
CWC confirms Macau sale talks 17 Oct 2012
CWC connects Seychelles to cable 22 Aug 2012
SkyVision acquires CWC's Afinis 07 Aug 2012 
CWC to sell Bermuda telecom unit 24 Feb 2011
Interview: Martin Fijman of CWC's Lime 21 Jan 2011

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