British telecoms firm Cable & Wireless Communications, parent company of LIME, on Thursday (Nov. 6) 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.
Privately-owned Columbus is a leading fibre-based telecommunications and technology services provider in the Caribbean, Central America and the Andean region.
“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.
London-listed CWC will pay $707.5 million in cash, with the rest in shares. It will fund the acquisition via a share placing totalling ten percent of the group.
This deal will no doubt shrink the Jamaican market, where the dominant players were Lime, Digicel and Flow.