25th Apr 2014 06:57
LONDON (Alliance News) - Cable & Wireless Communications PLC said Friday it has agreed to sell Compagnie Monégasque de Communication, the holding company for its 55% stake in Monaco Telecom, in a deal worth EUR321.8 million.
Cable & Wireless is selling the business to a private investment vehicle controlled by French entrepreneur Xavier Niel.
Monaco Telecom is the incumbent operator in Monaco where it is the market leader and only full service telecommunications provider.
CWC acquired its 55% stake in Monaco Telcom in June 2004 for EUR162 million.
The disposal is part of Cable & Wireless's strategy to focus on the Caribbean and Latin America region; after completion of the deal the firm will generate all of its revenue from the Caribbean and Latin America region, with the exception of the Seychelles, it said.
"We have enhanced the services available to the residents and businesses of Monaco and achieved good returns," said Cable & Wireless CEO Phil Bentley. "However, as we concentrate our business on the Caribbean and Latin America, we have taken this opportunity to crystallise the value we have created."
"Our Miami hub is now operational and with our balance sheet strength we intend to deploy the funds received in pursuing growth opportunities in our core region," added Bentley.
Shares in Cable & Wireless last traded at 52.6 pence per share.
By Alice Attwood; [email protected]; @AliceAtAlliance
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