No Man is an Island, but Isle of Man is no longer CWC

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No Man is an Island, but Isle of Man is no longer CWC

This week's article is going to be about M&A, so the news that Cable and Wireless Communication was "disposing" of its assets in Isle of Man, Monaco, Seychelles and a whole bunch of other assets in the Atlantic.

Batelco the Bahrain telephone company is buyer and you can see the difference in perspective.

 

Here is Tony Rice, CEO of CWC quote;

"The disposal of the Monaco & Islands portfolio is consistent with our objective of building a growth-driven, Pan-America focused business. The Monaco & Islands portfolio is a premium telecoms business and we are pleased to have agreed a deal that achieves an attractive value for our shareholders. We believe that Batelco will be an excellent owner and operator, bringing deep telecoms capability and international experience, and will continue the development of the businesses. The disposal will substantially reduce the geographic spread of our Group as well as increasing our financial flexibility. We will continue to operate the Monaco Telecom business, with the option to crystallise the second stage of the transaction if necessary consents are obtained."

In other words, they transacted the bird in the hand.

On the other hand you have Sheikh Mohamed bin Isa Al Khalifa, Batelco Group Chief Executive with his view.

"We are pleased to announce this acquisition which will increase the scale and diversification of our operations. Batelco Group will have the opportunity to operate, in collaboration with its new business partners, communications businesses across 17 markets. This acquisition supports our strategy by adding new cash generative business clusters to our existing operations across the Middle Eastern region. We look forward to working closely with all the shareholders and management teams in the companies to ensure we continue to deliver value and innovation to customers and be recognized as market leaders."

Bottom line, diversification for Batelco is bringing them into some interesting new markets where further acquisitions can be made.

On CWC's side they look more like a target and as the assets consolidate the suitor may become clear.

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