Batelco’s shareholders have approved the acquisition of Cable & Wireless Communications’ (CWC) ‘Monaco and Islands’ unit, paving the way for the Bahrain-based operator to expand into several exotic new markets.

Shareholders have backed the proposed acquisition of the CWC networks in the Maldives, Channel Islands and Isle of Man, the Seychelles, South Atlantic and Diego Garcia as well as a 25 percent shareholding in Compagnie Monagesque de Communications (CMC), which holds CWC’s 55 percent interest in Monaco Telecom.

The pair have also entered into a ‘put and call’ deal allowing CWC to sell Batelco the  remaining 75 percent interest in CMC within the next 12 months.

The transaction is valued at $680 million with the additional CMC stake expected to cost an extra $345 million.

Batelco is already present in six markets in the Middle East, and the deal will expand its presence to a further 17 – albeit tiny – new markets.

“This transaction is expected to be accretive to the underlying earnings of Batelco Group from the outset, and we are confident that we will be able to enhance value for our shareholders through the benefits derived from greater diversification, added scale and expertise, and the combined market leadership Batelco and the companies we are acquiring already enjoy in their respective markets,” said Batelco Group Chairman, Shaikh Hamad bin Abdulla Al Khalifa.

The acquisition was approved by CWC’s shareholders last week, but remains subject to regulatory approvals.

Meanwhile CWC announced at the weekend it has sold its Macau business to a Chinese-government controlled operation. C&W chief executive Tony Rice described it as a “landmark day” as he announced the $750 million (£460 million) sale of 51 percent of the Macau operation to Citic Telecom, part of a business owned by the Chinese government.