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C&WC Buys Majority Stake in BTC
C&CW acquires 51% stake in the Bahamas' sole mobile operator
February 10, 2011
2 Min Read
LONDON -- Cable & Wireless Communications Plc (CWC) today confirms that it has signed agreements with the Government of the Commonwealth of The Bahamas (the Government) to acquire a 51% interest in The Bahamas Telecommunications Company Limited (BTC). BTC is the exclusive mobile operator in The Bahamas, as well as a leading provider of fixed-line and broadband services. It will form a key plank of CWC’s Caribbean business, LIME, the leading fullservice telecommunications provider in the region.
CWC has developed a business and restructuring plan for BTC to improve and expand its services and increase its customer focus.
The key terms of the sale and purchase agreement and the shareholders’ agreement entered into with Government in respect to BTC are consistent with the memorandum of understanding announced on 2 December and include:
CWC will acquire 51% of the shares in BTC, including management control of the business, for US$210 million.
The purchase price is based on BTC having net cash of B$15 million (US$15 million) on closing, and is subject to standard post-completion adjustments for actual net cash and working capital balances at closing.
The liberalisation process for the mobile sector will commence no sooner than three years after privatisation.
A workforce restructuring programme after privatisation will be undertaken on a voluntary basis and is planned to be implemented within the first year after completion.
The acquisition will be funded from CWC’s existing cash balances and debt facilities. The transaction is expected to be earnings and cash flow accretive excluding restructuring costs.
The agreement is subject to a number of conditions including Parliamentary and regulatory approvals. CWC expects to be able to close the transaction around the beginning of April 2011.
Cable & Wireless Worldwide plc (London: CW)
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