Slovenian cableco Telemach has completed its takeover of the nation’s third-largest mobile operator Tusmobil.
Telemach parent, United Group, said in a statement today that the cash consideration of €84m payable on closing has been funded with…
Slovenian cableco Telemach has completed its takeover of the nation’s third-largest mobile operator Tusmobil.
Telemach parent, United Group, said in a statement today that the cash consideration of €84m payable on closing has been funded with existing cash, an upsized revolving credit facility and debt rollover. In connection with the transaction, United Group, owned by New York-based investment firm KKR, upsized an existing RCF by €75m to €135m.
A further €25m remains payable over the next three years.
United Group said it expects the combination of its fixed telecoms network and Tusmobil’s mobile infrastructure to create “significant synergies and clear benefits for the Slovenian citizens in terms of quality of services and innovation”.
Telemach has appointed Marko Ster as the new director of the mobile operator, Tusmobil said in its own statement. He replaces Gregor Stampohar, who has resigned.
Telemach agreed to buy Tusmobil from retail and telecoms group Tus Holding last October.
The acquisition will enable Telemach, which currently provides fixed-line telephony, internet and pay-TV services in Slovenia and Bosnia and Herzegovina, to become a quad-play operator.
Tusmobil claims to be the fastest-growing mobile player in Slovenia with nearly 300,000 customers. Its larger rivals are state-controlled Telekom Slovenije and Telekom Austria’s Si.mobil.
Telemach, which describes itself as the leading alternative cable operator in Slovenia and Bosnia and Herzegovina, has said it plans to make significant investments in upgrading Tusmobil’s mobile infrastructure.
The United Group, in which the European Bank for Reconstruction and Development (EBRD) also has a stake, says it provides cable and satellite TV, broadband internet and fixed and mobile telephony services to 1.9 million customers in South East Europe. It operates under the SBB brand in Serbia and a number of ancillary brands in other countries as a result of acquisitions.
