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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
‘Inheritance tax insurance’ enquiries are soaring – but is it worth it?
Premiums for whole of life insurance can run to £5,000 a month to cover a £300,000 inheritance tax bill, with policies costing more the older you take them out.
-
MPs warn over Lifetime ISAs which could leave savers out of pocket
The Treasury Committee has highlighted confusion around the Lifetime ISA withdrawal charge, which risks consumers losing “a significant part of their savings”