Citic Pacific Unit Is in Talks to Buy Macau Operator Stake
Citic Pacific Ltd. (267), controlled by China’s biggest state-owned investment company, said a unit is in talks to buy Cable & Wireless Communications Plc (CWC)’s stake in a Macau service operator to increase its shareholding.
Citic Telecom International Holdings Ltd. (1883) plans to buy Cable & Wireless’s 51 percent stake in Companhia de Telecomunicacoes de Macau, S.A.R.L. to boost its holding to 71 percent, Citic Pacific said today in a statement. Cable & Wireless confirmed the talks in a separate statement. The companies didn’t provide financial details of the planned deal.
The purchase would be Citic Pacific’s first since 2009, when it bought a 10 percent stake in a Shanghai real estate management company, according to data compiled by Bloomberg. Acquisitions of telecommunication companies have slowed worldwide, with $83.9 billion of completed purchases so far this year, compared with $180.3 billion in the same period of 2011, the data show.
Citic Telecom climbed 6.1 percent to close at HK$1.73 in Hong Kong trading, the highest level since March 16. Citic Pacific closed 1 percent higher at HK$9.72. Cable & Wireless advanced 3.7 percent to 37.54 pence as of 9:30 a.m. in London, poised for the largest gain in a month.
Citic Telecom expects to fund the proposed acquisition with internal resources, bank loans or debt, or equity financing, according to the Citic 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 in order to focus on its core business, it said.
Cable & Wireless Communications, based in London, was split from Cable & Wireless Worldwide in 2010.
To contact the reporter on this story: Michelle Yun in Hong Kong at email@example.com
To contact the editor responsible for this story: Michael Tighe at firstname.lastname@example.org