LIME-Flow deal by March
Telecommunications company Cable & Wireless Communications (CWC) is expecting to close its Columbus International Inc. acquisition within the next six weeks.
The company, which trades here as LIME, made the announcement in a report on its third quarter performance and financial position of the Group for the six months that ended September 30, 2014, saying it has already raised a portion of the US$1.85 billion for the acquisition.
The entire deal is worth just over US$3 billion. Besides the US$1.85 billion, CWC will assume about US$1.2 billion in net debt from Columbus’ balance sheet.
At the same time, the company is reporting revenues of US$444 million and a four per cent increase in mobile revenue.
On November 6, 2014, CWC announced it had agreed on the terms to purchase all of the equity of Columbus International Inc, a leading privately-owned fibre-based telecommunications and technology services provider operating here as Flow.
CWC said since the announcement it had raised gross proceeds of US$180 million from the placing of new shares and US$690 million from new loans to finance the acquisition.
It also obtained CWC bondholder consent to facilitate the financing of the acquisition and obtained CWC shareholder approval for the acquisition.
“We have also obtained a number of regulatory consents, including the necessary approvals for the acquisition in Jamaica. Completion of the acquisition remains subject to the satisfaction or waiver of certain other conditions, as set out in the circular to CWC shareholders dated 19 November 2014. We anticipate completion to take place by our fiscal year end,” it said.
The company is still awaiting regulatory approval from the Fair Trading Commission (FTC) in Barbados.
Meantime, CWC said, “primarily due to the placing of new shares and loans raised to finance the acquisition of Columbus” it recorded a net debt of US$302 million, including cash held in escrow as at December 31, 2014. This is a reduction of US$162 million since September 30, 2014.
Chief executive officer of CWC Phil Bentley said in the third quarter the company continued to “build momentum” through its investment-led Project Marlin.
The programme, which was introduced last year, will see the company increasing its capital investment by 30 per cent over a three-year period.
Additionally, LIME said, its Upgrade Barbados marketing campaign “led to six per cent revenue growth”.