Telefonica sells Airwave O2
Airwave is part of O2
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Thursday, 19, Apr 2007 11:16
Spanish telecoms group Telefonica is selling its UK emergency radio network Airwave O2.
The business has been snapped up by two funds controlled by Australia's Macquarie Bank for the price of £1.9 billion (A$4.8 billion).
The Macquarie Communications Infrastructure Group (MCG) and Macquarie European Infrastructure Fund II (MEIF II) will each own a 50 per cent stake in the company, which is contracted to provide a secure radio network to police services throughout the UK.
Fire and ambulance services also use Airwave, which is part of the O2 group owned by Telefonica.
The Madrid-based company has seen its debts soar since the acquisition of O2 in 2006 and its decision to sell Airwave comes amid speculation that it may also sell its TV production company Endemol.
Telefonica said that the sale of Airwave was expected to be completed on Friday.
MCG said that the business was expected to deliver "significant" profit growth in the near term, based on an expected 20 to 30 per cent increase in revenue collected from the UK government in 2007 and 2008.
"Through this acquisition we have gained value-accretive exposure to a business with a custom-built, highly secure public safety network providing national coverage unrivalled by any other mobile operator in Britain," said MCG chief executive Scott Davies.
"Airwave complements and leverages our existing global experience in the provision of critical communications infrastructure services and expands and diversifies our leadership in British wireless communications infrastructure," he added.