6/4/2010 4:53:00 PM
Telefónica to sell Manx Telecom for £158.8m
Telefónica has agreed to dispose of its Isle of Man subsidiary, Manx Telecom, for £158.8m to HgCapital and CPS Partners.
The transaction is expected to be completed by the end of June after being approved by the Isle of Man Government.
Manx Telecom is the Isle of Man’s largest telecoms and internet provider. Services on the network include fixed line, mobile and data services. It was the first network in Europe to launch a live 3G service.
Telefónica claims the move reflects its ‘commitment to maintain financial discipline’ and actively manage the group’s portfolio.
Chairman and Chief Executive of Telefónica Europe, Matthew Key said: ‘We are delighted to have been able to conclude this agreement with HgCapital and CPS Partners. It provides clarity and certainty going forward for all parties, whilst recognising the value which has been built up in Manx Telecom over the years.
‘HgCapital has a solid track record in the wider Telecom Media and Technology (TMT) sector, while CPS Partners has strong telecoms experience. They take a long-term view of their investments and, together with Manx Telecom’s management team, are committed to continuing to invest in the development of this well-run business in the Isle of Man.
'Accordingly, I firmly believe that the transaction is in the best interests of customers, employees and Telefónica shareholders. I should like to thank all of the Manx Telecom staff for their tremendous support over the years and we look forward to continuing to work with the company as our preferred partner for services in the Isle of Man.’