Slaughter and May is advising Cable & Wireless Communications Plc ('CWC') in connection with its strategic alliance with Columbus Networks Ltd ('Columbus') to develop their international wholesale capacity businesses.

Under the alliance, which was announced on 13 May 2013, CWC and Columbus have formed a joint venture in the pan-America region. The joint venture will provide international wholesale capacity on the parties' substantial and largely complementary in-region sub-sea cable networks to third party carriers and the parties themselves. Columbus has a 72.5% majority share in, and management control of, the joint venture and CWC has a 27.5% share with minority protections.

The joint venture will initially operate on an agency basis by providing joint sales and marketing services for each of CWC's and Columbus' international wholesale capacity services. Subject to receipt of applicable regulatory approvals and the satisfaction of certain other conditions, Columbus and CWC will contribute their sub-sea and related assets into the joint venture company, which will then assume ownership and management control of the international wholesale capacity operations of the parties. In the meantime, Columbus and CWC will retain complete ownership and control of their respective existing networks in the region.

CONTACTS

Corporate and Commercial: Andrew Jolly (partner), Paul Mudie (associate), Ross Davies (associate), Thomas Braiden (associate); Competition: Christopher Wright (special adviser), Judd Lurie (associate), Rhiannon Pugh (associate); IP/IT: Cathy Connolly (partner), Marianne Helps (associate)

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