Citic Telecom buys Telecomunicacoes de Macau for $1,2 billion
Citic signed the agreement with Sable Holding Limited, a wholly-owned subsidiary of Cable & Wireless Communications Plc, Portugal Telecom, PT Participaçoes SGPS and PT Comunicaçes to acquire their entire interests in Companhia de Telecomunicacoes de Macau (CTM). The acquisitions account for 79% of the interests in total.
Upon completion of the acquisitions, Citic Telecom’s shareholding in CTM increases from 20% to 99%, and CTM would become a subsidiary of Citic Telecom. The acquisition requires the approval of the Macau Government and relevant PRC governmental andregulatory authorities. The Group expects to complete the transaction in the second half of 2013. Macau Post, an entity controlled by the Macau Government, continues to hold the remaining 1% equity in CTM.
"The increase in Citic Telecom’s stake in CTM facilitates our long term business expansion, generates solid synergies with our business integration and enables us to realise higher business growth. The acquisitions should also prove beneficial to the development of the community in Macau," said Xin Yue Jiang, Chairman of Citic Telecom.
CTM is principally engaged in mobile, fixed line and broadband services in Macau and is a major supplier of enterprise telecom services to corporate customers in Macau. According to the two signed agreements, Cable & Wireless is to sell its 51% interest in CTM to Citic Telecom at a consideration of $749.7 million (approximately HK$5,810.2 million), while Portugal Telecom is to sell its 28% interest in CTM to Citic Telecom at a consideration of $411.6 million (approximately HK$3,189.9 million).
At the same time, Citic Telecom entered into a three-year strategic alliance agreement with Portugal Telecom in which both parties will jointly identify investment opportunities in information and communication technology. ■