US business tycoon, John Malone’s Liberty Global Plc, has agreed to buy Cable and Wireless Communications, CWC in a cash-and-stock transaction valued at £3.5-billion.
The deal means that Liberty Global will take control of FLOW Jamaica, which was recently acquired by CWC.
That acquisition was approved by the Simpson Miller administration in January this year.
Bloomberg News is reporting that the move by Liberty Global to acquire CWC, is set to extend Malone’s European cable empire deeper into Latin America, with an eye for more deals in the region.
The deal represents a multiple of almost 11- times CWC’s adjusted annual earnings before interest, depreciation, taxes and amortization.
If the deal goes through the various regulatory hurdles, CWC shareholders will get a special 3-pence per share dividend.
As part of the deal, Liberty Global will assume CWC’s net debt, which stood at USD$2.7-billion, as of September 30 this year.
Meanwhile, CEO of Cable & Wireless Communications, Phil Bentley says he’s hoping American content distributors will issue licences to the Caribbean at the close of the deal.
He was speaking a shortly while ago on a conference call with journalists from across the Caribbean.