Citic Telecom Said in Talks to Pay $750 Million for C&W Unit
Citic Telecom International Holdings Ltd. (1883) may pay as much as $750 million for Cable & Wireless Communications Plc (CWC)’s stake in a Macau phone operator, two people familiar with the matter said.
The unit of Citic Pacific Ltd. (267) is negotiating with Cable & Wireless on the price of its 51 percent stake in Companhia de Telecomunicacoes de Macau, S.A.R.L. and the sale may fetch $700 million to $750 million, said the people, who asked not to be identified because the talks are private.
Citic Pacific said last week that Citic Telecom plans to boost its holding in the Macau phone company to 71 percent, without providing financial details. The unit bought 20 percent of the company, also known as CTM, from Citic Pacific in February 2011 for HK$1.4 billion ($180 million).
Citic Telecom fell 2.2 percent in Hong Kong trading, the steepest intraday decline since Aug. 16. The stock has advanced 10 percent this year.
A deal may be reached in the next few weeks, one of the people said. An external spokeswoman for Citic Pacific who asked that her name not be published declined to comment. CTM officials didn’t immediately return an e-mail seeking comment.
Citic Telecom expects to fund the proposed acquisition with internal resources, debt or equity financing, according to last week’s statement.
Citic Pacific is a steelmaker and property developer that is building an $8 billion iron ore mine in Western Australia. The Hong Kong-based company is considering selling part of its controlling stake in Citic Telecom to its parent to focus on its core business, according to the statement.
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