World VoIP NewsTelefonica sells Isle of ManTelefonica sells Isle of Man

Telefonica sells Isle of Man

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Telefónica is to sell its Isle of Man telecoms business for more than £130 million to a private equity consortium.
Telefonica has confirmed the sale of Manx Telecom to HgCapital – a private equity firm – and CPS Partners – a telecommunications management company with a history of acquiring operators in small countries – in a deal worth USD158.8 million, TeleGeography reports.

Manx Telecom is the largest provider of fixed and mobile services in the Isle of Man, and was bought by Telefonica in 2006 as part of the Spanish giant’s acquisition of O2. Telefonica said the sale will allow it to concentrate more on its largest markets.

Alex King, head of technology, media and telecoms at HgCapital, said the private equity group will provide material cash funding for Manx Telecom’s pension scheme.

Telefónica is due to receive £132.5 million in cash for Manx Telecom and the new owners are expected to remedy a deficit in the company’s pension scheme.

Manx Telecom was spun out of BT in 2001, as part of the demerger of O2. The former fixed line phone monopoly’s mobile phone business was acquired by Telefónica in 2006, GTB reports.

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