Cable & Wireless sails into Americas partnership with Columbus

Cable & Wireless Communications has entered into a strategic partnership for the pan-America region with rival Columbus Networks.

Cable & Wireless Communications has entered into a strategic partnership for the pan-America region with rival Columbus Networks.

The pair will form a joint venture in the region to unite their cable networks and provide international wholesale telecoms capacity for themselves and to sell to third party carriers.

Privately owned Columbus has management control of the joint venture through a 72.5% majority share, with CWC taking the remaining 27.5% share.

However, the transaction is not expected to have a material impact on the group's earnings initially.

CWC and Columbus both own large sub-sea cable networks in the Caribbean and Central American region and when combined, the joint venture will have a network platform of approximately 42,000 kilometres with connectivity to 42 countries.

Initially CWC and Columbus will retain ownership and control of their respective existing networks in the region, before the alliance is due to be broadened within the next two years with Columbus and CWC contributing their sub-sea and related assets into the joint venture company.

Tony Rice, Chief Executive of CWC, said the deal with enable the company to better monetise the excess capacity it has has on its networks.

"The alliance will put both CWC and Columbus in a strong position in the growing market for international wholesale capacity."

He added: "This joint venture aims to provide us with access to a secure, long-term supply of international data capacity to support our retail businesses in the pan-America region."

Shares in Cable & Wireless Communications were down 0.07% at 43p at 08:26 on Tuesday.

OH

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Four investment trusts for income investors to buy now
Investment trusts

Four investment trusts for income investors to buy now

Some high-yielding listed lending funds have come through the crisis with flying colours. David Stevenson picks four of the best.
12 Apr 2021
Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021