Cable & Wireless to demerge operations

Saturday, November 21, 2009 7:28 AM

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But says LIME Jamaica not for sale

Steven Jackson

Friday, November 06, 2009

Telecoms provider Cable and Wireless plc (C&W plc) said that its international operations, which includes Jamaica, will not be sold amidst yesterday's announcement that the group will separate into two companies in order to increase shareholder value.

"We are not selling the International division," said Lachlan Johnston, C&W plc director of public relations, in an interview with the Caribbean Business Report. "All that is happening is that the two operating segments of our business are being separated in the demerger."

The group's Worldwide and International (CWI) divisions will be split and relisted on international exchanges. Johnston added that services provided to Caribbean customers will remain unchanged. Also, that further details on the demerger will be revealed later in the month.

The group saw a 44 per cent increase in its profit at £120 million for six months ending September 30, but all of this profit came from the International division at £146 million versus the Worldwide division's £26-million loss.

The CWI business operates mobile, broadband, domestic and international fixed line services to residential and business customers in the Caribbean (trading as LIME), Panama, Macau and Monaco & Islands. The worldwide business operates globally, with core markets in the UK, Asia, Europe, the Middle East and Africa and provides connectivity in 153 countries. It sells enterprise and carrier solutions to the largest users of telecoms services around the globe.

Richard Lapthorne, chairman of C&W plc, commented: "As a result of the emerging signs of more settled conditions in financial markets, we are now moving forward to list the two businesses as independent, publicly-quoted companies. The board believes that a demerger is the right structure to drive further growth and value for shareholders by enabling both businesses to pursue their strategies independently, and it is keen to push ahead as quickly as possible. We are making good progress and will provide further details before the end of the month."

C&W plc is one of the world's leading international communications companies.