Cable & Wireless said the creation of separate companies for its blue-chip and regional telecoms operations should be completed by March.
Under the demerger proposals, company investors will be given shares in C&W Worldwide, which provides services to the world's largest users of telecoms, and C&W International (CWI), the operator of services in 38 local markets.
The British-based W
orldwide arm will be chaired by current boss John Pluthero, with chairman Richard Lapthorne set for the same role at CWI.
Mr Lapthorne said the two companies were ready to stand on their own after a lengthy period of restructuring focused the Worldwide division on major corporate clients. The period also saw C&W acquire telecoms firm Energis, and more recently, Glasgow-based provider Thus.
He said: "Since 2003 we have successfully transformed the business to the point that we now have two strong businesses that are ready to stand on their own as separately listed companies."
CWI is focused on fixed line, broadband and mobile services in four operating regions – the Caribbean, Panama, Macau and Monaco.
The demerger, which requires shareholder approval, is expected to be completed by March 31, C&W added.
It recently posted a 30 per cent rise in half-year earnings to £463 million, but the improvement was overshadowed by weaker Caribbean trading.
