Cable and Wireless communication (LON:CWC) sells Macau stake for $750 million

Cable and Wireless communication (LON:CWC), an UK based company listed in London Stock Exchange has reportedly sold its 51% controlling stake in Macau Telecommunications. It is one of its founding shareholders since 1981. The deal struck at CWC is said to earn a whooping amount of $750 Million. This deal also involves another company Portugal Telecom SGPS SA (ELI: PTC) selling its 28% stake in Macau Telecommunications. The combined deal of 79% is bought by Citic Telecom International Holdings Ltd (HKG: 1883), the telecom unit of Chinese owned Citic group for a total consideration of $ 1.16 billion.

The Hong Kong listed company (HKG:1883) will now hold 99% stake in the company after the acquisition is complete as it already held 20% stake in the underlying Macau Telecommunications. It is said to use its existing cash and bank loans for financing the deal. CWC in an interview said that it will use the money for repaying debt, and also for building strategies that will help the company improve business in Central America and Caribbean region. The shares of Cable and Wireless communication (LON:CWC) were up by 1.83% to close at $40.12, Shares of Citic Telecom International Holdings Ltd (HKG:1883) were up 0.40% and trading at HKD 2.54.