Cable and Wireless sells Macau business

published 14 January 2013

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.

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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.