Cable & Wireless Communications (CWC) has confirmed an earlier media report that it has received an approach from Bahrain’s Batelco for its Monaco & Islands business unit. Batelco subsequently also confirmed the report.
Talks are at an early stage,…
Cable & Wireless Communications (CWC) has confirmed an earlier media report that it has received an approach from Bahrain’s Batelco for its Monaco & Islands business unit. Batelco subsequently also confirmed the report.
Talks are at an early stage, TelecomFinance was told, and CWC has enlisted the services of JP Morgan with a price of around US$1bn being discussed.
Reuters, who broke the story earlier today, wrote with reference to three unnamed banking and industry sources that Batelco is being advised by BNP Paribas and Citigroup.
In a statement in reply to the Reuters report UK-based CWC confirmed this afternoon “that it has received an approach from Batelco Group regarding a possible transaction involving its Monaco & Islands business unit”.
Batelco said in an emailed statement issued subsequently that it can “confirm that we have expressed an interest to Cable & Wireless Communications Plc (CWC) to enter into a transaction involving their Monaco and Islands business unit, a division of CWC”.
Both companies said there could be no certainty that the discussions will lead to a transaction.
In an interview with TelecomFinance in May, Batelco CEO Shaikh Mohamed Bin Isa Al Khalifa had said the operator was prepared to raise debt to fund acquisitions, if necessary.
“With our sound investment grade credit ratings from S&P and Fitch, solid cash flows and virtually no debt, we are confident that we are capable of raising funds to pursue any new acquisitions,” he said at the time, adding that Batelco planned to target existing operators who offer fixed and wireless, voice, data and broadband services.
CWC’s Monaco & Islands unit had revenues of US$586m last year and EBITDA of US$186m, while operating cash flow was US$103m.
CWC said in its annual report that 90% of the portfolio’s EBITDA came from its operators in Monaco, the Maldives and Guernsey.
CWC’s Monaco & Islands unit has significant stakes in operators in Jersey, the Seychelles, the Falklands and the Isle of Man to name but a few.
It also holds a 36.75% stake in Roshan, the largest operator in Afghanistan, as part of a joint venture.
