John Malone’s international cable operator Liberty Global is set to takeover U.K. company Cable & Wireless Communications, which offers pay TV, internet, landline phone and wireless service in the Caribbean, Panama and the Seychelles.
The deal values CWC at £3.5 billion ($5.3 billion). In addition, Liberty Global will assume CWC’s debt, which was $2.7 billion as of Sept. 30. Malone already owns a 13% stake in CWC, following CWC’s acquisition of telecoms provider Columbus Intl., in which Malone held a 22% stake, last year.
Liberty Global expects that combining CWC with its operations in Latin America and the Caribbean, the LiLAC Group, would result in significant synergies, which would be in addition to the $125 million in synergies that are expected to come from the merger with Columbus. The CWC deal creates a premier broadband and wireless platform with 10 million subscribers.
Mike Fries, CEO of Liberty Global, said: “The acquisition of Cable & Wireless represents a watershed moment for our recently created LiLAC platform. It will add significant scale and management depth to our fast-growing operations in Latin America and the Caribbean, while creating a new regional consumer and B2B powerhouse. Upon completion, the combined business will serve 10 million video, data, voice and mobile subscribers, with leading positions across multiple markets.”