John Malone, owner of Libert Global Plc. Photo credit: The Guardian
JAMAICA OBSERVER – Liberty Global Plc has agreed to buy Cable & Wireless Communications Plc for £3.5 billion (US$5.3 billion), Bloomberg News is reporting.
The cash-and-stock transaction will extend Liberty owner John Malone’s empire deeper into Latin America, giving the US billionaire greater leverage for more deals in the region.
News of the buyout was communicated to FLOW Jamaica staff this afternoon by C&W head Phil Bentley.
“The deal represents a multiple of 10.7 times Cable & Wireless Communications’ adjusted annual earnings before interest, depreciation, taxes and amortisation, after taking into consideration cost synergies,” Bloomberg reported from a statement.
“Cable & Wireless shareholders will get a special 3 pence a share dividend at the deal’s close. The transaction is valued at 78.04 pence per CWC share, based on Friday’s closing price,” Bloomberg added.
The purchase will give Malone a critical mass in Latin America, where he created a tracking stock in July called LiLAC for Liberty Global’s assets in Chile and Puerto Rico, Bloomberg reported.
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