Citic Telecom International is acquiring a controlling stake in Macau's leading telecommunications operator, Companhia de Telecomunicacoes de Macau (CTM), for US$1.16 billion.
Citic Telecom, a Hong Kong-listed subsidiary of Citic Pacific, has agreed to buy 51 per cent of CTM from Britain's Cable & Wireless Communications for US$749.7 million and 28 per cent from Portugal Telecom for US$411.6 million.
CTM provides mobile, fixed-line, broadband and business telecommunications services.
In May 2010, Citic Telecom acquired 20 per cent of CTM from its Hong Kong-listed parent.
"The increase in Citic Telecom's stake in CTM from 20 per cent to 99 per cent provides Citic Telecom with an opportunity to take control of Macau's leading integrated telecommunications services provider," Citic Telecom said in a stock exchange filing.
The deal requires the approval of the central and Macau governments, as well as shareholders of Citic Telecom and Cable & Wireless. The acquisition will be financed by cash and new bank loans.