& cplSiteName &

C&W Comms Sells Its Stake in Monaco Telecom

Light Reading
News Wire Feed
Light Reading
4/25/2014
50%
50%

LONDON -- Cable & Wireless Communications Plc ("CWC" or the "Company") today announces that it has agreed the sale of Compagnie Monégasque de Communication S.A.M. ("CMC"), the holding company for CWC's 55% stake in Monaco Telecom S.A.M. ("Monaco Telecom"), to a private investment vehicle controlled by Xavier Niel, the French entrepreneur and industrialist, for a total consideration of €321,788,000 (US$445 million) (the "Disposal").

Monaco Telecom is the incumbent operator in Monaco where it is the market leader and only full service telecommunications provider. In addition, Monaco Telecom owns 36.75% of Telecom Dfevelopment Company Afghanistan Limited (Roshan), a leading mobile telecommunications operator in Afghanistan. Monaco Telecom also operates a Service-to-Operator division, which amongst other activities supplies the international country code and international carrier services to Kosovo, and has a service contract with OnAir, a company that provides passenger telephony solutions on board aircraft.

The CMC Group reported revenue of US$218 million, EBITDA of US$74 million and profit before tax of US$52 million in the 12 months to 31 March 2013. At 30 September 2013, the CMC Group had US$537 million of gross assets, and approximately 35,000 mobile, 34,000 fixed line and 17,000 broadband customers.

The US$445 million consideration for the Disposal reflects Monaco Telecom's strong financial performance and market position and represents a multiple of 8.4 times the CMC Group's proportionate EBITDA based on results for the 12 months to 31 March 2013. The consideration is subject to customary adjustments relating to the amount of cash, debt and working capital at completion and will be paid in cash upon completion. CWC acquired 55% of Monaco Telecom in June 2004 for a price of €162 million.

CWC has received all required legal and regulatory consents to the Disposal from the Principality of Monaco and consequently completion of the Disposal is conditional only upon approval from CWC shareholders and there being no material adverse change in the Monaco Telecom Group prior to completion.

The Disposal is a further step in CWC's strategy to focus on the Caribbean and Latin America region, and after completion of the Disposal, CWC will generate all of its revenue from the Caribbean and Latin America region, with the exception of the Seychelles.

The cash proceeds arising from the Disposal will reduce the Company's net borrowings thereby increasing its strategic and financial flexibility. Including the proceeds from the Disposal, pro-forma net debt as at 30 September 2013 would have been US$82 million.

The Disposal puts CWC in a strong position to pursue growth opportunities, both organic and inorganic, in the targeted Caribbean and Latin America region. Any investments will be in line with CWC's strict investment criteria and will be considered alongside regular reviews of balance sheet efficiency.

Phil Bentley, CEO of Cable & Wireless Communications, commented: "We are pleased to have agreed the sale of our interest in Monaco Telecom with the support of the Principality of Monaco. Over 10 years under our management and in partnership with the Principality we have enhanced the services available to the residents and businesses of Monaco and achieved good returns.

"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."

A circular will be sent in due course to CWC shareholders containing further details of the Disposal, together with a notice convening a General Meeting of the Company to consider and, if thought fit, approve the Disposal. Completion is expected to occur in mid-May.

Cable & Wireless Communications plc (London: CWC)

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
tpoulos
50%
50%
tpoulos,
User Rank: Lightning
4/26/2014 | 4:53:38 AM
Why?
That's all well and good for C&W but what does Iliad plan to do with Monaco Telecom? Why has Niel bought in? Does he need it to get residency in order to protect his fortune from the French taxman?
From The Founder
Either we perform a complete 'factory reset' on the way the telecom industry creates and deploys virtualization, or we face the consequences.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
The Urgency of Commercial 5G Services

4|26|17   |     |   (0) comments


The progress of 5G has been closely monitored in the industry. At the 2017 Brooklyn 5G Summit, the sense of urgency for a commercial 5G launch had started to surface among operators.
Women in Comms Introduction Videos
How Diversity Helps Comcast Mirror Its Customer Base

4|26|17   |   2:55   |   (0) comments


Diversity brings innovation, creative ideas and a way to reflect the broad spectrum of your customer base, Comcast Director of Customer Experience Jenelle Champlin says.
LRTV Huawei Video Resource Center
Mobile Operators & Video

4|25|17   |     |   (0) comments


Ovum's Ed Barton discusses the latest mobile operator strategies for mobile video.
LRTV Custom TV
Infinera Introduces Instant Network

4|20|17   |     |   (1) comment


Mike Capuano, vice president of marketing at Infinera, discusses the advancement from Instant Bandwidth to new Instant Network capabilities, which include Bandwidth License Pools, Moveable Licenses and Automated Capacity Engineering (ACE).
Women in Comms Introduction Videos
Vodafone's Eubank on Sponsors, Mentors & Moving On Up

4|19|17   |   4:25   |   (0) comments


Vodafone America's Head of Operations Kimberly Eubank breaks down the difference between a sponsor and a mentor and shares why both made a big difference in her career.
LRTV Custom TV
NYC Auto Show: Are We Smart Yet?

4|18|17   |     |   (0) comments


The auto industry is facing some big transformations as electric vehicles, autonomous technology and connected cars are seen as the future of the industry. During the much-anticipated NY international auto show, there was an emergence of new technology and mobility service on the show floor. Aside from performance, brands like Lincoln, Hyundai, Honda, Mercedes and ...
LRTV Huawei Video Resource Center
The Impact of Video

4|18|17   |     |   (0) comments


David Mercer from Strategy Analytics discusses the impact of video on current strategies.
LRTV Custom TV
Pardeep Kohli Discusses Network Transformation & the Market Opportunity for the 'New' Mavenir Systems

4|13|17   |     |   (0) comments


In a brief discussion at MWC 2017, Heavy Reading analyst Adi Kishore talks to Pardeep Kohli, CEO, Mavenir Systems about the creation of the 'new Mavenir' and some of the key challenges facing operators in today's market. A key theme of the discussion centers around operator need for software-only, virtualized solutions and how they will need to adapt to ...
Women in Comms Introduction Videos
Tech Maverick Shares Her Tips for Gender Inclusivity

4|12|17   |   7:28   |   (0) comments


Wendy Hall Bohling, a corporate escapee, author and gender exclusivity consultant, tells her story of sexism, bias and progress along the road to gender equality in the workforce.
LRTV Huawei Video Resource Center
Huawei at MWC 2017

4|11|17   |     |   (0) comments


At Mobile World Congress 2017, the biggest mobile industry gathering of the year, Huawei showcased its new innovations and solutions with the theme "Open Road," which focuses on cloud, 5G, operation transformation, videos and consumer-oriented products. Its campaign has been recognized by three awards given by GSMA.
LRTV Custom TV
China Telecom NFV Infrastructure on RSD

4|6|17   |     |   (0) comments


Lynn Comp, senior director of market development of Intel, is joined by Chong Zhang, storage engineer at Inspur and Ou Li Yan, architect for technology strategies of China Telecom, for a discussion of what NFV brings.
LRTV Custom TV
Nokia's IMPACT Software Demo

4|6|17   |     |   (0) comments


Khamis Abulgubein of IoT market development at Nokia demonstrates IMPACT (intelligent management platform for all connected things), a software solution with a horizontal approach to managing any device on any application.
Upcoming Live Events
May 15-17, 2017, Austin Convention Center, Austin, TX
May 15, 2017, Brazos Hall - Austin, TX
May 15, 2017, Austin Convention Center - Austin, TX
June 6, 2017, The Joule Hotel, Dallas, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Surprise! AT&T Markets 4G Advances as '5G Evolution'
Dan Jones, Mobile Editor, 4/25/2017
Did Verizon Outbid AT&T for Straight Path?
Dan Jones, Mobile Editor, 4/25/2017
Netflix Set to Enter China
Mari Silbey, Senior Editor, Cable/Video, 4/25/2017
First Year TIPs the Scale Toward Success
Denise Culver, 4/24/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.