Cable & Wireless Communications parent company of LIME will double the size of its business after agreeing to buy a Caribbean and Central American telecoms group backed by John Malone for about $3bn.
The British telecoms group has agreed terms to purchase Columbus International operators of FLOW, a privately owned telecoms and technology services provider in the Caribbean, Central America and the Andean region.
Cable & Wireless Communications will pay $1.9bn for the Barbados-based business, as well as assume about $1.2bn in net debt from Columbus’s balance sheet.
Mr Malone, chairman of US-based Liberty Global and the Caribbean firm’s largest single minority shareholder, will also end up with a large stake in CWC following the deal.
CWC will pay $708m in cash and issue shares to investment vehicles controlled by the two co-founders of Columbus and Mr Malone. The Columbus shareholders will hold about 36 per cent of shares in the larger group following the deal.