Slaughter and May is advising Cable & Wireless Communications Plc (CWC) on its proposed acquisition of Columbus International, Inc (Columbus) for consideration of US$1.85 billion. In addition, CWC will assume Columbus’ existing net debt of US$1.17 billion.

CWC is a full-service telecommunications company operating in 17 countries throughout the Caribbean and Latin America, and also the Seychelles. Columbus is a privately-owned diversified telecommunications and technology services company, based in Barbados, conducting business in 42 countries with approximately 700,000 residential customers in the Caribbean, Central America and the Andean region.

The terms of the acquisition, which is transformational for CWC, were announced on 6 November 2014. The consideration of US$1.85 billion payable by CWC will be settled through the payment of approximately US$707.5 million in cash and the issue to the principal shareholders of Columbus of shares in CWC comprising approximately 36% of CWC’s enlarged share capital.

CWC also announced today a placing of new shares constituting approximately 9.99% of CWC's outstanding share capital. CWC will finance the cash consideration of approximately US$707.5 million through a combination of the net proceeds of the placing and new debt financing commitments with JPMorgan Chase Bank.

Slaughter and May is working as a joint team with Paul, Weiss, Rifkind, Wharton & Garrison LLP in relation to the financing for the acquisition and the necessary US regulatory clearances.

Slaughter and May is also advising CWC on the relevant regulatory processes in connection with the acquisition.
 
Contacts

Corporate and Commercial: Andrew Jolly (partner), Paul Dickson (partner), Nigel Boardman (partner), Chris McGaffin (associate), Murray Cox (associate), Louise Campbell (associate), James Shirbin (associate), Charlotte Thorsen (associate), Richard Marron (associate), Ross Davies (associate), Joshua Sutton (associate); Financing: Ed Fife (partner), David Hay (associate), Matthew Podger (associate); Competition: Jordan Ellison (partner), Jantira Supawong (associate), Patrick Horan (associate), Neha Dhaun (associate); Pensions and Employment: Sandeep Maudgil (partner), Roland Doughty (partner); Tax: Sara Luder (partner)