Cable and Wireless to buy Columbus International

The International media is reporting that Cable and Wireless Communication (CWC) is to buy Columbus International, a privately-owned fibre-based telecoms provider in the Caribbean, Central America and the Andean region.



The Financial Times says Cable and Wireless will pay US$1.9 billion plus assume about US$1.2 billion in net debt from Columbus’ balance sheet, pushing the total value of the acquisition to US$3.1 billion.



Cable and Wireless Communication is the parent company of LIME in Jamaica while Columbus Communications, the operator of FLOW, is owned by Columbus International.



"This is a transaction that transforms CWC, providing a step-change in growth and returns," Phil Bentley, CWC’s chief executive is quoted as saying.

Signed deal! @ColumbusComm & Cable & Wireless announce $6 billion merger to form premier #Caribbean telecom provider pic.twitter.com/HNS9bomQ31

— Brendan Paddick (@BrendanPaddick) November 6, 2014

In 2009, there were reports that the locally based LIME was in acquisition talks with FLOW but that was rejected.



READ: We are not for sale! LIME, Flow deny Columbus talks



WATCH: Michele English tells the Flow story

It is reported that Columbus shareholders will receive roughly 36 per cent of shares in the new entity following the acquisition.



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