Telefonica has sold its majority stake in Manx Telecom to private investors for almost £160 million (€193 million), as it consolidates global assets to focus on key growth markets.
Private equity firm HgCapital and telecoms management outfit CPS Partners have agreed to buy the Isle of Man incumbent for £158.8 million, and expect to take the helm at the end of the month after gaining regulatory approval.
Manx Telecom MD Chris Hall said the deal is “very positive,” for the firm and its staff, and was “a huge endorsement of our track record in building a world class company.”
Alex King, Head of TMT at HgCapital, said Manx Telecom offers a stable investment because it has achieved strong organic growth in a market that boasts 25 years of unbroken GDP growth.
“The Isle of Man has invested heavily in electronic services, for which the island has achieved a global reputation,” King said, adding. “It has a diversified economy coupled with an educated and skilled workforce.”
Manx Telecom was spun-off from BT in 2001, and is famed for being the first operator in Europe to launch live 3G and HSPA services.
It is currently rolling out a £1 million NGN network across the island, which is due to be completed by end 2011.