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Business News Americas-English
September 7, 2004 Tuesday
From Lexis Nexis
U.S. mobile firm Centennial Communications plans to sell its Puerto Rican cable business for approximately $155 million in cash, the company said in a statement.
The sale, to U.S. investment company Hicks, Muse, Tate & Furst, is expected to be finalized in early 2005 pending regulatory approval. Hicks Muse has purchased 11 cable companies since 1995 and has about $11 billion under management.
Centennial's digital cable system counts around 73,000 subscribers and 5,000 high-speed internet customers in southern and western Puerto Rico.
"This has proven to be a good time to monetize our cable television business and this transaction accelerates the de-leveraging of the company," Centennial CEO Michael J. Small said in the statement.
Centennial plans to use the proceeds from the sale to fund the purchase of licenses from AT&T Wireless along with covering other capital expenditures it included in its 2004 guidance of US$160mn.
Centennial's Caribbean operation owns and operates wireless licenses for approximately 11.2 million net pops in Puerto Rico, the Dominican Republic and the Virgin Islands. It provides voice, data, video and Internet services on broadband networks in the region.