Citic Telecom buys control of CTM for $1.2b

Fiona Chau
14 Jan 2013

Citic Telecom International Holdings Limited (Citic Telecom) is acquiring a control stake in Companhia de Telecomunicações de Macau (CTM) for $1.16 billion.

Citic Telecom, a subsidiary of Hong Kong-based Citic Pacific, has agreed to buy 51% of CTM from Cable & Wireless Communications for $749.7 million and 28% from Portugal Telecom for $411.6 million.

The acquisitions will increase Citic Telecom’s stake in CTM from 20% to 99%, giving it an opportunity to take control of Macau’s incumbent carrier. Macau Post will hold the remaining 1% stake in CTM, being an entity controlled by the Macau government.

In May 2010, Citic Telecom bought 20% of CTM from its Hong Kong-listed parent, Citic Pacific.

The deal must be approved by the governments of Macau and China, as well as shareholders of Citic Telecom and Cable & Wireless.

Citic Telecom will fund the deal through its own cash and bank loan facilities. Upon completion of the acquisitions, CTM will become a subsidiary of Citic

Telecom, the company said in a filing to Stock Exchange.

CTM, which was established in 1981, provides mobile, fixed line and broadband services in Macau and is a major supplier of enterprise telecom services to corporate customers in Macau. As of November 30, 2012, the unaudited net asset value of CTM was approximately MOP1.721 billion ($215.5 million).

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