Welcome!

News Feed Item

CITIC Telecom to Acquire 79% Interest in CTM Increasing Its Shareholding to 99%

For a total cash consideration of US$1,161,300,000 Creates synergies and facilitates business diversification


Hong Kong, Jan 13, 2013 - (ACN Newswire) - CITIC Telecom International Holdings Limited ("CITIC Telecom" or the "Group;" stock code: 1883), a leading international telecoms services provider in Asia, announced that it has signed sale and purchase agreements with Sable Holding Limited (a wholly-owned subsidiary of Cable & Wireless Communications Plc ("Cable & Wireless") and Portugal Telecom, SGPS, S.A., PT Participaes SGPS, S.A. and PT Comunicaes, S.A. ("Portugal Telecom") respectively to acquire their entire interests in Companhia de Telecomunicacoes de Macau, S.A.R.L. ("CTM"). The acquisitions account for 79% of the interests in total, at a total cash consideration of US$1,161.3 million (approximately HK$9,000.1 million).

Upon completion of the acquisitions, CITIC Telecom's shareholding in CTM increases from 20% to 99%, and CTM would become a subsidiary of CITIC Telecom. The acquisition requires the approval of the Macau Government and relevant PRC governmental and regulatory authorities. The Group expects to complete the transaction in the second half of 2013. Macau Post, an entity controlled by the Macau Government, continues to hold the remaining 1% equity in CTM.

CTM is principally engaged in mobile, fixed line and broadband services in Macau and is a major supplier of enterprise telecom services to corporate customers in Macau. According to the two signed agreements, Cable & Wireless is to sell its 51% interest in CTM to CITIC Telecom at a consideration of US$749.7 million (approximately HK$5,810.2 million), while Portugal Telecom is to sell its 28% interest in CTM to CITIC Telecom at a consideration of US$411.6 million (approximately HK$3,189.9 million). The amount was determined after arm's length negotiations among the parties with reference to CTM's historical financial performance.

At the same time, CITIC Telecom entered into a three-year strategic alliance agreement with Portugal Telecom in which both parties will capitalize their respective expertises in certain areas of collaboration in the telecom sector and jointly identify investment opportunities in information and communication technology ("ICT").

Mr Xin Yue Jiang, Chairman of CITIC Telecom, said, "The Group has been placing great emphasis on Macau as a strategic market. The increase in CITIC Telecom's stake in CTM facilitates our long term business expansion, generates solid synergies with our business integration and enables us to realise higher business growth. The acquisitions should also prove beneficial to the development of the community in Macau. We are also very pleased to maintain good relationships with both Cable & Wireless and Portugal Telecom to create higher value for our shareholders."

CITIC Telecom expects to fund the acquisitions with its existing cash resources and new bank loan facilities. The Group has obtained commitments on a certain funds basis for short and long-term loan facilities from a group of banks to cover all of its funding requirements in relation to the acquisitions. CITIC Telecom may consider refinancing part or all of such facilities at a later date through a combination of equity issuance (including via a rights issue) and/ or bond issuance.

Benefits of Increasing the Group's Stake in CTM

CTM is Macau's leading integrated telecom services provider. It currently holds the rights until the end of 2021 to provide local and international switched fixed voice and data services granted by the Macau Government. CTM also operates other licenses from the Macau Government to provide mobile services in Macau.

The increased stake in CTM is in line with the Group's long term business strategy, enabling the Group to expand its telecommunication businesses in Greater China and facilitate the diversification of its customer base and services profile from a wholesale-dominated provider to a more end-user focused services provider.

To improve CTM's performance, CITIC Telecom will increase its investment in CTM to strengthen its infrastructure and building of support system. Leveraging its experience, the Group will also introduce innovative technologies in order to upgrade CTM's overall technological standard. The Group will also further integrate business operations in order to enhance CTM's international network coverage and innovation capabilities so to fully realise synergies. This direction is intended to build a more solid financial and operational profile, enhance the scale of the Group's business and create a more balanced revenue mix.

At the same time, while promoting sustainable healthy development of telecom services in Macau, CITIC Telecom is determined to play a more significant role in advancing the development of the Macau community. The Group plans to assist CTM to expand cloud computing applications, implements network convergence and advanced international telecom services as well as develop a 4G network, with the aim to transform Macau into a leading integrated digital city in the region.

Mr Xin Yue Jiang concluded, "CITIC Telecom has full confidence in the prospects of both Macau and the telecom industry in Macau. With the strong support from the CITIC Group, as we become the largest shareholder of CTM, the Group will actively complement the Macau SAR Government to enhance the technological standard of Macau's telecom industry, thus providing quality telecom services to Macau citizens and contributing to the new digitalised IT era of Macau."

About CITIC Telecom International Holdings Limited

CITIC Telecom is one of Asia's leading telecoms service providers specialising in hub-based services. In addition to serving its key markets in China and Hong Kong, the Group is actively expanding its business to international telecoms operators. The Group has four main types of business, namely Voice Services, SMS Services, Mobile VAS and Data Services. Its independent hub connects over 621 telecoms operators in 75 countries or regions. Additional news and information about the company is available at www.citictel.com

Source: CITIC Telecom International Holdings Limited

Contact:
trategic Financial Relations Limited
Veron Ng   +852 2864 4831   [email protected] 
Keris Leung   +852 2864 4863   [email protected]
Agnes Luo   +852 2864 4851   [email protected]
 




Copyright 2013 ACN Newswire. All rights reserved.

More Stories By ACN Newswire

Copyright 2008 ACN Newswire. All rights reserved. Republication or redistribution of ACN Newswire content is expressly prohibited without the prior written consent of ACN Newswire. ACN Newswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
To manage complex web services with lots of calls to the cloud, many businesses have invested in Application Performance Management (APM) and Network Performance Management (NPM) tools. Together APM and NPM tools are essential aids in improving a business's infrastructure required to support an effective web experience... but they are missing a critical component - Internet visibility.
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" ...
Both SaaS vendors and SaaS buyers are going “all-in” to hyperscale IaaS platforms such as AWS, which is disrupting the SaaS value proposition. Why should the enterprise SaaS consumer pay for the SaaS service if their data is resident in adjacent AWS S3 buckets? If both SaaS sellers and buyers are using the same cloud tools, automation and pay-per-transaction model offered by IaaS platforms, then why not host the “shrink-wrapped” software in the customers’ cloud? Further, serverless computing, cl...
“We're a global managed hosting provider. Our core customer set is a U.S.-based customer that is looking to go global,” explained Adam Rogers, Managing Director at ANEXIA, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of Soli...
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, explained the best practices of continuous testing at high scale, which is rele...
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
Hardware virtualization and cloud computing allowed us to increase resource utilization and increase our flexibility to respond to business demand. Docker Containers are the next quantum leap - Are they?! Databases always represented an additional set of challenges unique to running workloads requiring a maximum of I/O, network, CPU resources combined with data locality.
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"A lot of times people will come to us and have a very diverse set of requirements or very customized need and we'll help them to implement it in a fashion that you can't just buy off of the shelf," explained Nick Rose, CTO of Enzu, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
As software becomes more and more complex, we, as software developers, have been splitting up our code into smaller and smaller components. This is also true for the environment in which we run our code: going from bare metal, to VMs to the modern-day Cloud Native world of containers, schedulers and micro services. While we have figured out how to run containerized applications in the cloud using schedulers, we've yet to come up with a good solution to bridge the gap between getting your contain...
"We host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Who are you? How do you introduce yourself? Do you use a name, or do you greet a friend by the last four digits of his social security number? Assuming you don’t, why are we content to associate our identity with 10 random digits assigned by our phone company? Identity is an issue that affects everyone, but as individuals we don’t spend a lot of time thinking about it. In his session at @ThingsExpo, Ben Klang, Founder & President of Mojo Lingo, discussed the impact of technology on identity. Sho...