MANAMA – Bahrain Telecommunications Co. (Batelcois in talks with Cable & Wireless Communications (CWC) to buy its assets in Monaco and a host of island nations, a deal potentially worth around $1 billion, three banking and industry sources said. Batelco, whose move to buy a stake in Zain Saudi collapsed last year, is circling the Monaco & Islands portfolio of CWC, the British telecoms group operating in the Caribbean and formed through a demerger of Cable & Wireless in 2010. Talks between both the parties are ongoing and a deal is not imminent, the sources said Monday, speaking on condition of anonymity as the matter is not public. Batelco and CWC confirmed the talks in separate statements, saying there was no guarantee a deal would be reached. Batelco aims to make at least one acquisition in 2012 to offset falling domestic revenue, its chief executive told Reuters in April. It had cash and bank balances of $286 million, according to its 2011 annual report, and could leverage its balance sheet to $1 billion or more for acquisitions, the CEO said. CWC shares were up 4.5 percent in late trading. BNP Paribas and Citigroup are advising Batelco on the transaction, while J.P. Morgan Chase is advising the seller, two of the banking sources said. Citi is leading financing efforts for the transaction, according to one banker. “Batelco has been keen to do a deal for a while now to address falling home revenue. A potential deal to buy CWC assets should give them presence in markets they are not in currently,” one the sources said. Monaco & Islands operates in 12 markets, including the Maldives, Seychelles and Falkland Islands, and offers fixed-line, mobile, broadband and television services. Its brands include Monaco Telecom, Dhiraagu in the Maldives, and Sure in Britain's Channel Islands and Isle of Man. – Reuters
