Cable & Wireless, the global telecommunications group, today (18 June 2003) announced it has completed a transaction to sell parts of its domestic business in Germany to Arques (Schweiz) AG, a private equity company focussing on investments in special situations such as corporate turnarounds. The Arques group holds a significant stake in Versatel Deutschland Holding, one of the largest fixed network operators in Germany, headquartered in Stuttgart.
The disposal is part of Cable & Wireless’ strategy to focus its activities on multinational enterprises and service providers in continental Europe and to withdraw from providing domestic only services. Cable & Wireless retains offices in Munich, Düsseldorf, Frankfurt and Hamburg and its data centre in Munich as well as network and operations in Germany to serve strategic customers with a full portfolio of end-to-end business information and communications solutions. All voice, data and IP (internet protocol) services for this strategic customer base will be unaffected by this disposal. In addition, Cable & Wireless will work closely with Arques to ensure a seamless service to the business customers affected by the transaction.
“This disposal is the latest in our divestment programme to achieve a responsible exit from the domestic business in continental Europe. This is about allowing us to focus on providing services to our core customers,” said Robert Drolet, CEO continental Europe, Cable & Wireless. “We look forward to a close working relationship with Arques and to ensuring a smooth transition for customers and employees.”
The disposal of parts of the German business follows sales of Cable & Wireless’ domestic businesses in Belgium, Sweden, the Netherlands, Switzerland and Italy. The value of the net assets of the German business being sold is approximately Euro 2m. Other transactions are contemplated to complete the withdrawal from non-core activities announced in November 2002.
Within continental Europe, Cable & Wireless is focused on serving multinational enterprises and service providers, such as Heinz, Royal Dutch Shell, Diesel and Vodafone, providing IP, data and wholesale voice services on an international basis. Cable & Wireless also supplies IP transit to major telecommunications operators in virtually every European country, including nearly two thirds of European incumbents.
