Cable & Wireless Communications Plc ("CWC" or “the Company”), the majority shareholder of Dhivehi Raajjeyge Gulhun PLC (Dhiraagu), today announced that it has agreed with Bahrain Telecommunications Company ("Batelco") the sale of the majority of the assets of its Monaco & Islands business unit for an enterprise value of US$680 million.

CWC will divest its entire shareholdings in its businesses in The Maldives, Channel Islands and Isle of Man, the Seychelles, South Atlantic and Diego Garcia as well as creating a partnership with Batelco for CWC’s 55% shareholding in Monaco Telecom. Batelco will have a 25% shareholding in the partnership with CWC maintaining a 75% shareholding.

CWC’s disposal of its Monaco & Islands division is in line with the Company’s strategy to reshape its portfolio of businesses to focus on the Central American and Caribbean region as well as increasing its financial flexibility. The businesses included in the transaction serve a combined 752,000 mobile, fixed, broadband and TV customers.

The sale is subject to the satisfaction of necessary regulatory and other conditions, and is expected to complete by the end of CWC’s current financial year.

Tony Rice, CEO of Cable & Wireless Communications, commented:
“The sale of the majority of the Monaco & Islands portfolio is consistent with our objective of building a growth-driven, Pan-America-focused business. We believe that Batelco will be an excellent owner and operator for these businesses, bringing deep telecoms capability and international experience, to continue to invest and grow the businesses.”

Sheikh Mohamed bin Isa Al Khalifa, Batelco Group Chief Executive, commented:
“Dhiraagu is a well-managed business that we want to invest in so that it continues to build upon its existing strengths. Batelco is in the process of building a telecoms business of global relevance of which the Maldives will be an important part. We will continue the development of Dhiraagu as a market leader and we are looking forward to supporting each of the businesses and contributing to the communities they operate in.”