Welcome!

@CloudExpo Authors: Elizabeth White, Pat Romanski, Liz McMillan, Yeshim Deniz, Flint Brenton

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.

@CloudExpo Stories
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
Many banks and financial institutions are experimenting with containers in development environments, but when will they move into production? Containers are seen as the key to achieving the ultimate in information technology flexibility and agility. Containers work on both public and private clouds, and make it easy to build and deploy applications. The challenge for regulated industries is the cost and complexity of container security compliance. VM security compliance is already challenging, ...
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 18th International CloudExpo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
18th Cloud Expo, taking place June 7-9, 2016, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some...
SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from Web startups to global enterprises. SoftLayer's modular architecture, full-featured API, and sophisticated automation provide unparalleled performance and control. Its flexible unified platform seamlessly spans physical and virtual devices linked via a world...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, will provide an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life ...
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
SYS-CON Events announced today that EastBanc Technologies will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. EastBanc Technologies has been working at the frontier of technology since 1999. Today, the firm provides full-lifecycle software development delivering flexible technology solutions that seamlessly integrate with existing systems – whether on premise or cloud. EastBanc Technologies partners with p...
SYS-CON Events announced today that BMC Software has been named "Siver Sponsor" of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. BMC is a global leader in innovative software solutions that help businesses transform into digital enterprises for the ultimate competitive advantage. BMC Digital Enterprise Management is a set of innovative IT solutions designed to make digital business fast, seamless, and optimized from mainframe to mo...
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit y...
SYS-CON Events announced today that Isomorphic Software will exhibit at SYS-CON's [email protected] at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, high-productivity enterprise web applications for any device. SmartClient couples the industry’s broadest, deepest UI component set with a java server framework to deliver an end-...