Telefónica has sold its Isle of Man business Manx Telecom to HgCapital and CPS Partners in a deal worth £158.8 million.
Manx Telecom, which was acquired by Telefónica in 2006, is the largest network provider for fixed and mobile services to businesses and consumers in the Isle of Man.
The deal is expected to close at the end of the month, on conclusion of the notice period given to the Isle of Man Government.
CPS, a telecommunications managemnet company, has a history of acquiring small country operators around the globe has partnered with HgCapital, a leading investor in the European private equity market, to complete the 100 per cent buyout from Telefonica.
CPS has previously managed operations in Guernsey, Monaco, Bahrain, Bermuda, Barbados, the Maldives, the Seychelles and Macau.
Telefónica’s said the sale of Manx Telecom will allow it to concentrate more on its largest markets and increase its focus and investment in its key brands O2 and Movistar.
Telefónica chairman and chief executive Matthew Key said: “We are delighted to have been able to conclude this agreement with HgCapital and CPS Partners. It provides clarity and certainty going forward for all parties, whilst recognising the value which has been built up in Manx Telecom over the years.
“HgCapital has a solid track record in the wider Telecom Media and Technology (TMT) sector, while CPS Partners has strong telecoms experience. They take a long-term view of their investments and, together with Manx Telecom’s management team, are committed to continuing to invest in the development of this well-run business in the Isle of Man.
“Accordingly, I firmly believe that the transaction is in the best interests of customers, employees and Telefónica shareholders. I should like to thank all of the Manx Telecom staff for their tremendous support over the years and we look forward to continuing to work with the company as our preferred partner for services in the Isle of Man”