Macquarie Telecom (MAQ) today announced it has entered into a Share Sale Agreement with CITIC 1616 Holdings Limited , one of the leading wholesale voice service providers in Asia. Macquarie Telecom agreed to sell to CITIC 1616 its wholly-owned subsidiary Macquarie Singapore Pte Limited for cash consideration of SGD10.5 million (subject to adjustment). The transaction is expected to complete by the 31 of July 2009. In addition, Macquarie Telecom will be CITIC 1616’s preferred partner for its Australian inbound and outbound Voice and Data traffic. Conversely CITIC 1616 will be Macquarie Telecom’s preferred partner into Asia. The strategic partnership with CITIC 1616 means that Macquarie Telecom will expand its reach into the Asian region by leveraging CITIC 1616’s extensive presence in the region. CITIC 1616 has points of presence worldwide for interconnection, with over 350 telecom operators in 62 countries. Its wholly own subsidiary, CPCNet, is also the leading MPLS VPN service provider in Asia.
Mr. David Tudehope, the Chief Executive Offer of Macquarie Telecom, said “we are excited about entering into a new strategic partnership with a telecommunications enterprise of the size and reach into the Asia market of CITIC 1616.” ”Our new relationship with CITIC 1616 will strengthen our Asian reach, particularly into China. The sale of our Singapore business will generate additional capital for the continued expansion of our Hosting and Data businesses,” Mr Tudehope said. “We are pleased that our new partner CITIC 1616 shares Macquarie Telecom’s passion for customer service and believe both our customer bases will benefit from this new strategic partnership.” Mr. Norman K. T. Yuen, the Chief Executive Officer of CITIC 1616, said: “This new strategic partnership will create significant business synergies and mutual benefits through reciprocal traffic between CITIC1616 in Greater China and Macquarie Telecom in Australia as well as other collaborative opportunities.”
Tags: Asset Sale, JV Agreement, Macquarie Telecoms, MAQ, Telecommunications
