British telecoms firm Cable & Wireless Communications, parent company of LIME, today agreed to buy Barbados-based peer Columbus International, operators of Flow Jamaica, for us$1.85 billion.
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.
Privately-owned Columbus is a leading fibre-based telecommunications and technology services provider in the Caribbean, Central America and the Andean region.
It is reported that Columbus shareholders will receive roughly 36% of shares in the new entity following the acquisition.