Cable & Wireless Communications Plc ("CWC" or the "Group") today announces that its subsidiary Monaco Telecom SAM ("…
Cable & Wireless Communications Plc ("CWC" or the "Group") today announces that its subsidiary Monaco Telecom SAM ("Monaco Telecom") has agreed to sell its Algerian satellite communication business Divona SpA ("Divona") to Smart Link Com SpA, of Algeria, for a total consideration of US$1.4 million on a cash free and debt free basis.
Proceeds from the sale will be used for general working capital purposes. The transaction will not have a material impact on the Group. The consideration will be satisfied in cash and assumed debt and is subject to certain adjustments for working capital and transition costs.
The transaction is subject to customary regulatory approvals by the relevant authorities in Algeria.
1) As at 31 December 2012, the gross assets and net assets of Divona were US$14 million and US$2 million respectively. In the financial year ended 31 December 2012, Divona generated a profit before tax of US$3.0 million before exceptional gains and US$8.8 million after exceptional gains. CWC's interest in Divona is held through its stake in Monaco Telecom.
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