US-based Telecommunications International (TCI) is to increase its stake in Princes Holdings, the MMDS operator which is 50 per cent owned by Independent Newspapers. TCI has raised its stake in Princes Holdings from 25 per cent to 50 per cent having purchased the interests of the third shareholder, United International Holdings (UIH), in a deal with an estimated value of up to $25 million (£17.4 million).

TCI's proposed purchase of the UIH stake is part of a wider agreement between the two companies, under which UIH will purchase TCI's cable interests in Israel and Malta.

Announcing the transaction yesterday, TCI executive vice president, Ms Miranda Curtis, said it was "delighted" to have the opportunity to strengthen its relationship with Independent Newspapers. "Together we plan to develop Princes holdings and will rapidly expand the range of entertainment and communications services on offer to our subscribers."

Independent Newspapers chief executive officer, Mr Liam Healy, said TCI's increased interest in the group would bring a wealth of relevant experience to the joint venture.

TCI is an international media company providing programming services and operating television, telephone and internet distribution networks around the world. It is a partner in ventures that provide cable services to 4.3 million subscribers in Europe, Asia and Latin America and also provides 50 cable and satellite programming services in various other countries.