A group of British investors led by Ashmore Investment Management is to pay $354 million to acquire Asia Netcom, the international undersea cable unit owned by the Chinese fixed line telecom operator China Netcom. The UK investors have reportedly signed an MoU granting 30-day exclusive negotiating rights for the former regional business of defunct international cable operator Global Crossing. The purchase would give the group a substantial base for building a strong position in regional cable capacity. Ashmore already has a considerable interest in the Asian cable operator C2C after buying into the failed Singapore Telecom unit’s debt last year. The proposed deal values Asia Netcom, which generated revenues of about $255 million in 2005, at about 25-27 times earnings before interest, taxes, depreciation and amortisation.
