CITIC Telecom International Holdings (CITIC Telecom) will own 99 percent of Macau telecommunications company Companhia de Telecomunicações de Macau (CTM) after paying 8.99 billion Hong Kong dollars (US$1.15 billion) for two stakes totalling 79 percent of the company, CTM said.
In the statement CTM also said that Cable & Wireless Communications and Portugal Telecom had agreed to sell their stakes of 51 percent and 28 percent, respectively, in the Macau carrier, for 5.81 billion Hong Kong dollars, and 3.19 billion Hong Kong dollars.
In a statement issued via the Hong Kong Stock Exchange, CITIC Telecom International Holdings said that the acquisition was intended to expand its telecommunications business to Greater China, as well as serving to improve CTM’s performance.
Both transactions require approval from the Macau government and the government and regulatory bodies of the People’s Republic of China.
As well as the sales contract, CITIC Telecom and PT also signed a strategic alliance deal for some areas of the telecommunications sector and to identify investment opportunities.
Postal company Correios de Macau continues to have a 1 percent stake in CTM. (macauhub)