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CWC to buy Columbus Intl for USD1.85bn.


6 November 2014 - British telecommunications company Cable & Wireless Communications Plc (LON:CWC) said on Monday it had agreed to acquire Barbados-based sector player Columbus International Inc in a USD1.85bn (EUR1.48bn) cash-and-stock deal that would help it bolster its mobile, fixed line, broadband and TV portfolio.

The transaction, which also includes the assumption of USD1.17bn of Columbus debt, is expected to deliver USD85m in pre-tax cost synergies a year, to be recorded in full in fiscal 2017/18, as well as one-time capital expenditure synergies of USD145m in the first three years and additional revenue benefits.

The takeover is subject to shareholder approval, regulatory clearance in Barbados, Jamaica, Trinidad and Tobago and clearance under the Hart-Scott-Rodino antitrust legislation.

CWC will fund the deal with USD707.5m in cash and some 1.557 new ordinary shares to be issued with entities controlled by Columbus director and co-founder John Risley, major shareholder John Malone and president, CEO and co-founder Brendan Paddick, giving them a stake of 36% in the enlarged entity. The cash portion of the price will be settled with proceeds from the new stock issue and new debt financing.

Columbus provides telecommunication services to around 700,000 residential customers in the Caribbean, Central America and Andean region. The company reported an operating profit of USD104m on revenues of USD505m and EBITDA of USD216m in 2013.

The acquisition would help CWC expand its presence in the region, complementing its TV, broadband and B2B capabilities in the market and providing a step-change in growth and returns, the buyer's CEO Phil Bentley commented.

Country: Barbados

Sector: Telecommunications

Target: Columbus International Inc

Buyer: Cable & Wireless Communications Plc

Vendor: Brendan Paddick, John Malone , John Risley

Deal size in USD: 1.85bn

Type: Corporate acquisition

Financing: Cash & Stock, Debt

Status: Agreed

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Publication:M & A Navigator
Geographic Code:5BARB
Date:Nov 6, 2014
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