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C&W set to take control of Bahamas company

Cable & Wireless Communications plc. (CWC) announced that it has signed a non-binding memorandum of understanding (MOU) with the Government of the Commonwealth of the Bahamas to acquire a 51 percent interest in the Bahamas Telecommunications Company (BTC).

CWC, which has an operation in Bermuda, and the Bahamas Government will now work together to complete due diligence, finalise contractual terms and obtain necessary consents and other regulatory clearances with the aim of completing the transaction in the first quarter of 2011.

BTC, which is wholly-owned by the Government, is the exclusive mobile operator in the Bahamas, as well as a leading provider of fixed-line and broadband services. It is complementary to CWC's Caribbean business, LIME, which is the leading full-service telecommunications provider in the region.

Under the MOU, it is proposed that CWC will acquire the majority equity stake in BTC, including management control of the business, for $210 million, and that CWC will work with the Government and the management of BTC to develop a business plan for BTC, addressing its plans for the modernisation of telecommunications throughout the Bahamas and for the development of BTC following privatisation.

The MOU also stipulates a restructuring of the workforce of BTC soon after completion of the transaction, which will be carried out on a voluntary basis.

Subject to completion, the acquisition is expected to be funded from CWC's existing cash balances and debt facilities.

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Published December 24, 2010 at 1:00 am (Updated December 24, 2010 at 6:49 am)

C&W set to take control of Bahamas company

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