John Malone's Liberty Global to Acquire Caribbean Telecom Firm in $5.3 Billion Deal
The deal for Cable & Wireless represents "a watershed moment" for the company's Latin American business, says CEO Mike Fries.
John Malone’s Liberty Global said on Monday that it has agreed to acquire Cable & Wireless Communications (C&W), which offers cable and other services in the Caribbean, in a deal valued at $5.3 billion (3.5 billion pounds).
The company is offering stock and a special dividend in the transaction.
Liberty Global has previously said it wants to grow its business in Latin America, for which it earlier in the year launched a tracking stock called LiLAC.
C&W is active in Panama and the Caribbean. It also operates in Monaco and the Seychelles, but is headquartered in the U.K. It has 6 million subscribers and offers pay TV, broadband and telephony services.
Upon completion of the deal, the combined business will serve 10 million video, data, voice and mobile subscribers.
Said Mike Fries, CEO of Liberty Global: "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."