Hong Kong’s Citic Telecom to acquire Macau telco CTM for $1.16 bn

14 Jan 2013

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Citic Telecom International Holdings, part of Hong Kong's diversified business conglomerate Citic Pacific Group, said yesterday that it has agreed to buy a substantial 79-per cent stake in Companhia de Telecomunicações de Macau (CTM), a Macau-based telecom operator for approximately $1.16 billion.

Citic Telecom said in a filing with the Hong Kong stock exchange, it would acquire the stakes held by Sable, a wholly-owned subsidiary of London-based Cable & Wireless Communications Plc, which owns a 51-per cent stake in CTM and Portugal Telecom's 28-per cent stake.

Citic will pay Sable $750 million for its interest in CTM and another $412 million to PT.

After the acquisition, Citic Telecom, which currently owns around 20 per cent stake in CTM, will see its shareholding rise to 99 per cent. The remaining 1 per cent interest will continue to be held by Macau Post, on behalf of the Macau government.

Citic Telecom said it would fund the deal with current cash in hand and new bank loans, and may consider raising fresh equity or bonds at a later stage to refinance the current debt.

Founded in 1981 and listed on the Hong Kong Stock Exchange in 2007, CTM is primarily engaged in mobile, fixed line and broadband services in Macau and is a major supplier of enterprise telecom services to corporate customers.

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