Portugal Telecom signs off sale of TV Cabo Macau Thursday

10 January 2007

Macau, China, 10 Jan – Portugal Telecom (PT) is due Thursday to sign the sale of the 87.5 percent it owns in Macau cable TV company, TV Cabo Macau to a consortium made up of local and mainland Chinese businesses.

The consortium that is buying TV Cabo Macau, along with Chinese sector players, includes the Macau businessman that owns the Kong Seng company.

As well as TV Cabo, PT is also finalizing the sale of 6.67 percent of the Cosmos company and 22.22 percent of Telesat, in an agreement that may be signed this week.

With the sale of TV Cabo Macau, Telesat and Csomos, PT will only be represented in Macau through local telecom compant Companhia de Telecomunicacoes de Macau (CTM), with a 28 percent stake and in phone directory company Directel – Listas Telefónicas (in which it has a majority stake), but all these assets could be sold by the middle of the year.

TV Cabo Macau has the exclusive concession on cable TV in the territory, but the market presence of cut-price antenna companies that provide a high number of satellite television channels have prevented the company from profiting from the business.

TV Cabo Macau closed the 2005 financial year with a net loss of 15.8 million patacas and an operating loss of 7.2 million patacas.

In accumulated terms, TV Cabo Macau, which ahs been operating since July 2000, has losses of 153.6 million patacas and investments of 70 million patacas.

As well as PT, TV Cabo de Macau’s shareholders include, Macau tourism and leisure company, Sociedade de Turismo e Diversoes de Macau, with 7.5 percent, Banco Nacional Ultramarino de Macau, with 3 percent, and Ng Fok Holdings, with 2 percent. (macauhub)