Cable & Wireless Communications (LSE: CWC.L - news) (CWC) has sold its controlling stake in Macau's largest telecoms company for $750m (£465m), in a move that will allow it to focus on its core Caribbean and central American business (Other OTC: ARBU - news) .
The complex deal involves CITIC, part of the Chinese state-owned investment company CITIC Group and one of Asia's leading telecoms service providers, also acquiring Portugal Telecom's 28pc stake in Companhia de Telecomunicações de Macau SARL (CTM), in a total deal worth $1.16bn.
On completion of the deals, which are conditional on both going through, CITIC Telecom will own 99pc of CTM, as it already holds a 20pc stake in the company.
In a statement from UK-based CWC, which was a founding shareholder of CTM back in 1981, it said completion of the deal was expected to take between six to nine months, with cash from the sale used to reduce the company's debt and "increase its strategic and financial flexibility".
"The disposal is a further step in CWC's strategy to reshape its portfolio, reduce geographic spread and grow its business in the Central American and Caribbean region," CWC said in its statement.
The announcement to sell its Macau holding comes only a month after it confirmed it was to sell the majority of its Monaco and Islands division to a Bahrain company for $680m (£420m).
CWC’s chief executive Tony Rice, said that following the completion of the Monaco and Macau deals, "we will be a focused pan-America regional operator, with a strong balance sheet, and we intend to pursue new growth opportunities, both organic and inorganic, in this region”.
The company will now call a General Meeting to seek approval of the deal from shareholders.