Click here to close now.

Welcome!

Cloud Expo Authors: Elizabeth White, Carmen Gonzalez, Pat Romanski, Liz McMillan, Dan Ristic

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
SYS-CON Events announced today that Plutora, Inc., the leading global provider of enterprise release management and test environment management SaaS solutions, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Headquartered in Mountain View, California, Plutora provides enterprise release management and test environment SaaS solutions to clients in North America, Europe and Asia Pacific. Leading companies ...
SYS-CON Events announced today that Akana, formerly SOA Software, has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Akana’s comprehensive suite of API Management, API Security, Integrated SOA Governance, and Cloud Integration solutions helps businesses accelerate digital transformation by securely extending their reach across multiple channels – mobile, cloud and Internet of Thi...
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, shared some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, de...
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular In...
SYS-CON Events announced today that SafeLogic has been named “Bag Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. SafeLogic provides security products for applications in mobile and server/appliance environments. SafeLogic’s flagship product CryptoComply is a FIPS 140-2 validated cryptographic engine designed to secure data on servers, workstations, appliances, mobile devices, and in the Cloud....
SYS-CON Events announced today that FierceDevOps will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. FierceDevOps keeps software developers and IT operations personnel updated on the latest news and trends around the rapidly evolving role of the traditional IT worker.
SYS-CON Events announced today that StorPool Storage will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. StorPool is distributed storage software that allows service providers, enterprises and other cloud builders to run data storage on standard x86 servers, instead of using expensive and inefficient storage arrays (SAN).
PubNub on Wednesday released an open source template to allow developers to add Skype-like video chat into their apps. The free template provides a fully functional video chat platform using WebRTC, PubNub and Google Authentication for a global, reliable collaboration solution. “While the WebRTC protocol has created huge excitement as a way to deliver video chat ubiquitously, there’s still a gap between the protocol itself and the ability to deploy a working, globally scaled, collaboration appl...
The IoT Bootcamp is coming to Cloud Expo | @ThingsExpo on June 9-10 at the Javits Center in New York. Instructor. Registration is now available at http://iotbootcamp.sys-con.com/ Instructor Janakiram MSV previously taught the famously successful Multi-Cloud Bootcamp at Cloud Expo | @ThingsExpo in November in Santa Clara. Now he is expanding the focus to Janakiram is the founder and CTO of Get Cloud Ready Consulting, a niche Cloud Migration and Cloud Operations firm that recently got acquir...
SYS-CON Events announced today that QTS Realty Trust, one of the nation’s largest and fastest-growing providers of data center facilities and cloud services and a leader in security and compliance, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. QTS Realty Trust, Inc. (NYSE: QTS) is a leading national provider of data center solutions and fully managed services, and a leader in security and compliance...
SYS-CON Events announced today that IndependenceIT, a leading software provider of simplified IT management solutions for workspaces, applications and desktops-as-a-service, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IndependenceIT's Cloud Workspace® Suite combines application, end-user and infrastructure management into a seamless, easy-to-manage platform, with a unified management interface an...
SYS-CON Events announced today that that Innodisk, the service-driven provider of industrial embedded flash and DRAM storage products and technologies, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Innodisk is a service-driven provider of industrial embedded flash and DRAM storage products and technologies. With satisfied customers across the embedded, aerospace and defense, cloud storage markets an...
Today, IT is not just a cost center. IT is an enabler and driver of business. With the emergence of the hybrid cloud paradigm, IT now has increasingly more capabilities to create new strategic opportunities for a business. Hybrid cloud allows an organization to utilize multi-tenant public clouds, dedicated private clouds, bare metal hosting, and the associated support and services for the right use cases through an on-demand, XaaS model. This model of IT creates tremendous opportunities for busi...
SYS-CON Events announced today that kintone has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. kintone promotes cloud-based workgroup productivity, transparency and profitability with a seamless collaboration space, build your own business applic...
SYS-CON Events announced today that WSM International (WSM), the world’s leading cloud and server migration services provider, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. WSM is a solutions integrator with a core focus on cloud and server migration, transformation and DevOps services.
Modern Systems announced completion of a successful project with its new Rapid Program Modernization (eavRPMa"c) software. The eavRPMa"c technology architecturally transforms legacy applications, enabling faster feature development and reducing time-to-market for critical software updates. Working with Modern Systems, the University of California at Santa Barbara (UCSB) leveraged eavRPMa"c to transform its Student Information System from Software AG's Natural syntax to a modern application lev...
SYS-CON Events announced today that Site24x7, the cloud infrastructure monitoring service, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Site24x7 is a cloud infrastructure monitoring service that helps monitor the uptime and performance of websites, online applications, servers, mobile websites and custom APIs. The monitoring is done from 50+ locations across the world and from various wireless carr...
DevOps tasked with driving success in the cloud need a solution to efficiently leverage multiple clouds while avoiding cloud lock-in. Flexiant today announces the commercial availability of Flexiant Concerto. With Flexiant Concerto, DevOps have cloud freedom to automate the build, deployment and operations of applications consistently across multiple clouds. Concerto is available through four disruptive pricing models aimed to deliver multi-cloud at a price point everyone can afford.
SYS-CON Events announced today that Intelligent Systems Services will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Established in 1994, Intelligent Systems Services Inc. is located near Washington, DC, with representatives and partners nationwide. ISS’s well-established track record is based on the continuous pursuit of excellence in designing, implementing and supporting nationwide clients’ mission-cri...
The best mobile applications are augmented by dedicated servers, the Internet and Cloud services. Mobile developers should focus on one thing: writing the next socially disruptive viral app. Thanks to the cloud, they can focus on the overall solution, not the underlying plumbing. From iOS to Android and Windows, developers can leverage cloud services to create a common cross-platform backend to persist user settings, app data, broadcast notifications, run jobs, etc. This session provide...