CWC sells stake in Macau unit

Contact: Tejas Venkatesh

Cable & Wireless Communications (CWC) has announced the sale of its 51% stake in Companhia de TelecomunicaƧƵes de Macau (CTM) to Chinese state-owned company CITIC for $750m in cash. The move is part of the telecom service provider’s continued restructuring and efforts to focus solely on the Americas, and comes one month after it offloaded its Monaco & Islands division.

CTM generated EBITDA of $165m (on $524m in sales) for the year ended March 31, 2012, giving the company an EV/EBITDA valuation of 8.9. Last month, BATELCO bought the Monaco & Islands division of CWC for $680m, or 6.3x trailing EBITDA. CWC’s restructuring has been underway ever since it spun off from its former parent company Cable & Wireless. That spinoff also created Cable & Wireless Worldwide, which was sold to Vodafone in April 2012 for $1.7bn, or 2.7x trailing EBITDA.

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