Batelco to acquire C&W Communications’ assets for US$680 million

Batelco’s shareholders have approved the acquisition of Cable & Wireless Communications’ (CWC) ‘Monaco and Islands’ unit, paving the way for the Bahraini operator to expand into several new markets.

Shareholders have backed the proposed acquisition of the CWC networks in the Maldives, Channel Islands and Isle of Man, the Seychelles, South Atlantic and Diego Garcia as well as a 25 per cent shareholding in Compagnie Monagesque de Communications (CMC), which holds CWC’s 55 per cent interest in Monaco Telecom.

The pair have also entered into a ‘put and call’ deal allowing CWC to sell Batelco the remaining 75 per cent interest in CMC within the next 12 months.

The transaction is valued at US$680 million with the additional CMC stake expected to cost an extra US$345 million.

Batelco is already present in six markets in the Middle East, and the deal will expand its presence to a further 17 – albeit tiny – new markets.

“This transaction is expected to be accretive to the underlying earnings of Batelco Group from the outset, and we are confident that we will be able to enhance value for our shareholders through the benefits derived from greater diversification, added scale and expertise, and the combined market leadership Batelco and the companies we are acquiring already enjoy in their respective markets,” said Batelco Group chairman, Sheikh Hamad Bin Abdulla Al Khalifa.

The acquisition was approved by CWC’s shareholders last week, but remains subject to regulatory approvals.