Citic 1616 buys CTM stake for $180m

Citic 1616 buys CTM stake for $180m

Robert Clark  |   February 15, 2010
Hong Kong-based Citic 1616 is to buy a 20% stake in Macau incumbent CTM from its parent Citic Pacific.
The company, which provides IDD and enterprise services in Hong Kong and mainland China, will pay HK$1.4 billion ($180m) for the stake, it announced Thursday
The price of HK$2.3 per share is a premium of approximately 1.8% over last trading price. Citic 1616 will pay HK$467 million in cash and HK$933.4 million in new shares.
As part of the deal, Citic Pacific – a Chinese government-owned “red chip” investment firm – will increase its shareholding in CITIC 1616 from 52.57% to 60.65%.
As well as Citic Pacific, CTM is owned by Cable & Wireless, Portugal Telecom and the state-owned Macao Post. It has exclusive rights to offer fixed voice in Macau until the end of 2011, and also holds 2G, 3G licenses and ISP licenses.
Citic 1616 said the deal would increase roaming traffic passing through its Macau hubs and boost its wholesale IDD business.
Chairman Xin Yuejiang said it offered synergies in network sharing and innovation in new services.
Citic 1616 last week announced a 12% higher net profit of HK$372 million for 2009 on sales of HK$2.7 billion. 
Robert Clark

Tell Us What You Think

Add comment

The content of this field is kept private and will not be shown publicly.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd> <a> <p> <span> <div> <h1> <h2> <h3> <h4> <h5> <h6> <img> <img /> <map> <area> <hr> <br> <br /> <ul> <ol> <li> <dl> <dt> <dd> <table> <tr> <td> <em> <b> <u> <i> <strong> <font> <del> <ins> <sub> <sup> <quote> <blockquote> <pre> <address> <code> <cite> <embed> <object> <strike> <caption>
  • Lines and paragraphs break automatically.
  • Use <!--pagebreak--> to create page breaks.

More information about formatting options

Video from Telecom Channel

OSS/BSS project takes on 'life of its own'
Telecom Fiji CIO outlines challenge of recent transformation and handing off too much responsibility to its SI.


But will cheap pricing be enough?
And the curious case of CURE
Operators transitioning to 4G networks must integrate backhaul which supports both Evolved Packet Core for LTE and traditional mobile backhaul solutions
Proposed regulations could force carriers to either raise access prices or slash investment
Mobile data traffic growth is forcing operators to look to 4G much earlier than initially planned, and into once unheard of partnerships with their traditional rivals
The inconvenient truth is that the longer we wait, the more costly it will be


The CEO of the world's No. 1 cell-phone maker discusses dealmaking, a partnership with Microsoft, and the pace of change at Nokia
A radical new approach to storing and analysing traffic statistics

MWC2010 List

HTC guns for top 3 smartphone makers
Powermat wants to charge your desktop
Femtos outlook improves as cellcos seek offload options
Cheaper smartphones key to broadband takeup

Frontpage Content by Category

Industry experts put their heads together and stick their necks out to call the big trends for 2010


Bureaucracy is a good excuse
Third top exec to exit under Thodey