Americas-focused Cable and Wireless Communications’ (CWC) has sold its 55% stake in Monaco Telecom to French industrialist Xavier Niel for US$445m.
Niel is the founder of French challenger operator Iliad, but he is buying Compagnie Monegasque de…
Americas-focused Cable and Wireless Communications’ (CWC) has sold its 55% stake in Monaco Telecom to French industrialist Xavier Niel for US$445m.
Niel is the founder of French challenger operator Iliad, but he is buying Compagnie Monegasque de Communication (CMC) – which holds CWC’s Monaco Telecom stake – in a personal capacity via a private investment vehicle.
The US$445m fee represents a multiple of 8.4x CMC’s proportionate EBITDA based on results for the 12 months to 31 March 2013, according to the seller. CWC originally acquired its stake in Monaco Telecom in 2004 for US$195m.
CWC was advised by JP Morgan, Akira Partners, Evercore and Slaughter & May.
CMC reported revenue of US$218m and EBITDA of US$74m in the 12 months to 31 March 2013. As of last September it had US$537 million of gross assets, and approximately 35,000 mobile, 34,000 fixed line and 17,000 broadband customers.
The British telco had previously agreed to sell the asset to Batelco, also for US$445m, when the Bahraini operator acquired a disparate portfolio of operators from CWC.
However, that deal was scuppered by the principality’s government – which owns the remaining 45% in Monaco Telecom – and so the two companies unwound that transaction at the end of last year.
Phil Bentley, CEO of CWC, said that Monaco supported its latest deal, meaning that regulatory approval should be a formality. CWC will convene an EGM for its shareholders to approve the transaction and is aiming to close it in mid-May.
“As we concentrate our business on the Caribbean and Latin America, we have taken this opportunity to crystallise the value we have created,” Bentley said.
“Our Miami hub is now operational and with our balance sheet strength we intend to deploy the funds received in pursuing growth opportunities in our core region.”
CWC said the disposal puts it in a strong position to pursue organic and inorganic growth opportunities in the Caribbean and Latin American region. Its balance sheet has already been bolstered in recent years by the disposal of its Macau operations and portfolio of islands businesses.
Following the Monaco Telecom disposal, CWC will draw all of its revenue from the pan-America region, with the exception of its one remaining outlier unit in the Seychelles.
Monaco Telecom is the market leading operator in the principality and offers quad play services. In addition to its mobile operations it owns 36.75% of Afghan mobile operator Roshan, and operates a small service-to-operator division.
