(WEB HOST INDUSTRY REVIEW) — UK telecommunications carrier Cable & Wireless (www.cw.com) announced on Thursday its plans to demerge its worldwide division from its international business CWI.
The separation of the two businesses comes after months of speculation.
The company recently cut its full year earnings guidance for the international business from $935 million to about $880 to $900 million, which is largely attributed to its disappointing performance in the Caribbean.
That brings the guidance for the whole group down from $1.69 billion to $1.65 billion.
“The Board believes that a de-merger is the right structure to drive further growth and value for shareholders by enabling both businesses to pursue their strategies independently,” says Richard Lapthorne, chairman of Cable & Wireless.
The Worldwide business provides a range of communications services including IP, data, voice and Web hosting to large enterprise, reseller and carrier customers.
The business currently operates in 153 countries around the world.
CWI provides fixed line and mobile services through its four regional telecoms business units in the Caribbean, Panama, Macau and Monaco & Islands, all of which it operates from London.
Cable & Wireless says it will disclose further information, such as when the de-merger will take effect, by the end of the month.
