Telefónica Sells Manx Telecom

Subsidiary goes to HgCapital and CPS Partners for £158.8M ($231.8M)

June 4, 2010

1 Min Read

SLOUGH, U.K. -- Telefónica today announces that it has signed a definitive agreement with HgCapital and CPS Partners for the disposal of 100% of its wholly owned subsidiary, Manx Telecom, for a total enterprise value of £158.8m (€190m at current exchange rates).

Formal notice has been given to the Isle of Man Government and completion of the transaction is anticipated at the end of June 2010. The purchase price implies a multiple of 6.3 times OIBDA for the year ended 31 December 2009.

Manx Telecom is the Isle of Man's largest telecommunications and internet provider, offering the full range of fixed line, mobile and data services to consumers and businesses. It has a successful track record in achieving major industry breakthroughs - it was the first company in Europe to launch a live 3G service and also launched Europe's first commercial High Speed Downlink Packet Access (HSDPA) service. Manx Telecom continues to support the Isle of Man Government's e-business strategy of developing a world-class telecommunications infrastructure, including data hosting services, to attract companies and investment to the island. The company employs 300 people and reported revenues of £69 million, with OIBDA of £25 million, in the year ended 31 December 2009.

Matthew Key, Chairman and Chief Executive of Telefónica Europe, said: "We are delighted to have been able to conclude this agreement with HgCapital and CPS Partners. It provides clarity and certainty going forward for all parties, whilst recognising the value which has been built up in Manx Telecom over the years."

Telefónica Europe plc (O2)

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