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C&W Communications buys Columbus Int'l for USD 1.85 bln
2014-11-06 09:38:00| Telecompaper Headlines
(Telecompaper) C&W Communications said it has agreed to acquire Columbus International, a privately-owned fibre services provider in the Caribbean, Central America and Andean region, for USD 1.85 billion. To help fund the acquisition, C&W is planning a share placement of 9.99 percent of its outstanding share capital. C&W said the acquisition will be earnings neutral in the first year after completion but materially enhance earnings thereafter. With Columbus on board, the group is now expected to achieve recurring annualised pre-tax cost synergies of around USD 85 million, delivered in full in the 2017-2018 financial year, and one-time capital expenditure synergies of USD 145 million in the first three financial years following completion, with additional revenue benefits. C&W added that it will, for the moment, maintain its existing dividend policy of 4 cents per CWC share. C&W said the deal is in line with the strategy it unveiled in May, where it said it wanted mobile leadership, improved fixed-mobile convergence, better TV offerings, and a strong B2B/B2G offering. The deal will also strengthen the management team. Based in Barbados, Columbus counts 700,000 residential customers in the regions where it operates. The company provides triple-play cable TV and broadband services as well as backhaul connectivity to 42 countries in the region, capacity and IT services.
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Category:Telecommunications