Cable & Wireless Communications (CWC), the UK-based telco that just purchased 51% of BTC, has sold their Bermuda operations.
CWC, which operates fixed-line and mobile telecoms in former colonial countries such as Panama, Macau and some Caribbean Islands, said it agreed to sell Cable & Wireless Bermuda to Canada’s The Bragg Group for $70 million.
Following the sale, the company plans to redistribute the proceeds through a $100 million share buyback program.
Chief Executive Tony Rice said, “Bermuda does not fit our business model as it is not a full-service operation while BTC provides excellent opportunities and a strong strategic fit with our Caribbean business.”
The selling price of $70 million represents a multiple of 6.5 times 2009/2010 earnings before interest, taxes, depreciation and amortization. The sale is subject to regulatory approval but should be completed by the end of March.
Cable & Wireless Communications stock price rose 11 percent, the most it has risen since May, 2003.