Citic Pacific unit eyes Macau CTM takeover

Citic Telecom International, a subsidiary of Hong Kong conglomerate Citic Pacific, plans to acquire a controlling interest in Macau's main telecommunications network operator.

In a joint filing with the Hong Kong stock exchange yesterday, Citic Telecom and Citic Pacific said talks had started with Cable & Wireless Communications to buy its 51 per cent stake in Companhia de Telecomunicações de Macau (CTM).

The proposed acquisition, the amount of which was not disclosed, would increase Citic Telecom's shareholding in CTM to 71 per cent. In February, it bought its parent's 20 per cent interest in CTM for HK$1.4 billion.

In a separate statement, Cable & Wireless Communications confirmed that it was involved in talks with Citic Telecom, which provides enterprise services to telecommunications network operators and internet service providers.

"At this point, there can be no certainty that the discussions will lead to a transaction," the British firm said.

London-listed Cable & Wireless Communications has operations in the Caribbean, Macau, Panama, Monaco and numerous small island nations. It was formed from the demerger of parent Cable & Wireless into two companies in March 2010. The other firm, Cable & Wireless Worldwide, was acquired in July by Vodafone Group.

Established in 1981, CTM provides mobile, fixed-line and broadband services in Macau. It is also a major supplier of telecommunications-related services to businesses in the world's largest casino market.