C&W refinances with a view to completing demerger in March 2010

18 Nov 2009

UK-based Cable & Wireless (C&W) has announced that it intends to complete its delayed demerger of its two business units – Worldwide and CWI Group – by 31 March 2010, having put in place new financial arrangements and plans for its pension scheme in order to achieve that goal, Dow Jones Newswires reports.

As part of its preparations C&W said that CWI Group would receive USD1 billion in new bonds and bank facilities in order to meet its medium-term debt maturities, whilst it has set aside GBP500 million (USD840.7 million) for the Worldwide unit, of which GBP200 million will replace existing debt. Subsequently, and subject to shareholder approval, investors will receive one share in each company for each C&W share they currently hold, and the two separate companies will be listed on the London Stock Exchange.

Commenting on the latest development in the long-running process, Richard Lapthorne, C&W’s chairman, said: ‘Since 2003, we have successfully transformed the business to the point that we now have two strong businesses that are ready to stand on their own as separately listed companies.’

According to TeleGeography’s GlobalComms database, CWI Group operates integrated telecoms services in 33 countries through 25 subsidiaries and eight joint ventures, offering mobile, broadband internet, and domestic and international fixed line services to residential and business customers. Worldwide meanwhile provides enterprise and carrier solutions to the largest users of telecoms services across the UK, US, continental Europe and Asia, as well as offering wholesale broadband services in the UK through C&W Access (formerly part of Bulldog) which was integrated with its parent in 2007.

United Kingdom, Cable & Wireless (UK)