International telecommunications group, Cable & Wireless (LSE: CW) announced that it has appointed Tim Weller as its new chief financial officer for the Worldwide business unit, which is set to demerge from the group in March 2010. Weller will be joining Worldwide from his current position as CFO of United Utilities (LSE: UU)in May 2010.
In November, Cable and Wireless announced its intention to demerge its Worldwide division into a separate publicly-quoted company. According to Cable and Wireless the decision followed signs of more settled conditions. The complete demerger of the Worldwide business is anticipated by 31 March 2010, with each company separately listed on the London Stock Exchange.
“This is an exciting time for us as we demerge from Cable and Wireless plc”, Worldwide CEO Jim Marsh commented, “Tim's experience of leading finance in a listed company environment will enable us to drive financial performance and to ensure that we have the right operating and reporting structure in place to meet our future needs.”
Also in November, the FTSE100 constituent revealed a programme of debt issuance and the renegotiation of credit facilities to support the demerger. To serve the Worldwide business the company intends to secure a total £500 million and for CWI it intends to secure a total of up to $1billion. The worldwide initial debt financing is being obtained through the issue of a £200 million convertible bond with a maturity of 2014.
The international communications company currently operates through two standalone business units - Worldwide and CWI. The Worldwide business division specialises in high quality communications business-to-business services such as IP, data, voice and hosting to large enterprise, reseller and carrier customers. Its international operations span 153 countries with its main markets in the UK, Asia and EMEA (Europe, Middle East and Africa).