* HG Capital, CPS buy Isle of Man firm
* Enterprise value of deal 159 mln stg
* Sale part of strategic divestment policy
* Telefonica shares up 0.7 pct vs lower market
MADRID, June 4 Spain's Telefonica (TEF.MC) has
sold Manx Telecom, the main telecoms provider for the Isle of
Man, to a private equity firm as part of its ongoing plan to
divest non-core assets.
UK private equity investor HG Capital said on Friday that it
was buying the majority stake in Manx, alongside telecoms
management company CPS Partners. The enterprise value of the
deal is 158.8 million pounds ($232.5 million), HG said.
Manx Telecom - which provides services to the Isle of Man, a
small British dependency in the Irish sea - had revenue of 69
million pounds in 2009, said HG, which manages the listed HG
Capital Trust (HGT.L).
"Manx Telecom has a superb record of sustainable organic
growth," said HG telecoms head Alex King.
"We see this as very much a growth investment for HG Capital
and will continue to invest in supporting the organic growth of
the business and in the form of bolt on acquisitions."
Telefonica is trying to buy Portugal Telecom PTC.LS's
stake in Brazilian mobile operator Vivo VIVO4.SA, but the
Portuguese operator wants more than the 6.5 billion euros ($7.92
billion) that Telefonica has offered.
Telefonica shares were up 0.7 percent at 0953 GMT, compared
with a slightly lower IBEX 35 index .IBEX
(Reporting by Robert Hetz and Rosalba O'Brien; Editing by