Cable and Wireless sells Macau business

Asset sales at Cable & Wireless Communications (CWC) continue apace as it offloads its share in a Macau operator.

Asset sales at Cable & Wireless Communications (CWC) continue apace as it offloads its share in a Macau operator.

The firm has agreed to sell its 51% stake in Companhia de Telecomunicaes de Macau (CTM) to to CITIC Telecom for $749.7m.

The business plans to use the cash to reduce its debt pile.

CITIC Telecom also announced it has agreed with Portugal Telecom to acquire its 28% stake in CTM.

Both CWC's deal and the PT disposal are conditional on the completion of each other.

CWC said the sale was a further step in its strategy to reshape its portfolio, reduce geographic spread and grow its business in the Central American and Caribbean region.

The news follows the announcement that the company would sell off its Monaco & Islands business in December.

"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," said Tony Rice, CWC's Chief Executive.

The $749.7m deal represents an enterprise value of $1,470m for CTM and an EV/EBITDA multiple of 8.9 times based on results for the 12 months to March 31st 2012.

CTM had a net cash balance of $70m as at December 31st 2012.

The firm reported revenue of $524m, EBITDA of $165m and profit before tax of $133m in the 12 months to March 31st 2012.

Recommended

Share tips of the week – 9 December
Share tips

Share tips of the week – 9 December

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
9 Dec 2022
The top funds to invest in now
Funds

The top funds to invest in now

As market volatility continues, here are the top funds, stocks and investment trusts investors are putting their money into, according to one investme…
2 Dec 2022
7 sin stocks to buy yielding up to 8%!
Share tips

7 sin stocks to buy yielding up to 8%!

Sin stocks don’t have the best reputation, but when it comes to investment returns, they’re certainly worth a closer look.
2 Dec 2022
Share tips of the week – 2 December
Share tips

Share tips of the week – 2 December

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
2 Dec 2022

Most Popular

Is it cheaper to leave the heating on low all day?
Personal finance

Is it cheaper to leave the heating on low all day?

The weather is getting colder and energy bills are rising, but is it really cheaper to leave the heating on low all day or should you only turn it on …
1 Dec 2022
Radiator vs electric heater – which is cheaper?
Personal finance

Radiator vs electric heater – which is cheaper?

We compare the costs, pros and cons of radiators and electric heaters and see which one will help keep your energy bill as low as possible.
28 Nov 2022
The pros and cons of smart meters – should you switch?
Personal finance

The pros and cons of smart meters – should you switch?

A smart meter can help you keep tabs on your energy usage, but is it better than a regular meter? We take a look at smart meters vs regular meters.
2 Dec 2022