US cable media group may bid to acquire Germany’s number three cable operator Kabel BW, Bloomberg reported citing people with knowledge of the matter.
The company is looking to merge its German cableco Unitymedia with Kabel BW, and has reportedly…
US cable media group may bid to acquire Germany’s number three cable operator Kabel BW, Bloomberg reported citing people with knowledge of the matter.
The company is looking to merge its German cableco Unitymedia with Kabel BW, and has reportedly already hired Goldman Sachs to advise it on the deal and potential anti-trust issues.
In late November, Swedish private equity firm EQT Partners mandated JPMorgan and Deutsche Bank to exit Kabel BW. EQT has owned Kabel BW since 2006, having paid previous owner Blackstone a reported E1.3bn for the assets. A potential sale or IPO of the cableco could now fetch as much as E2bn, Bloomberg wrote.
Many private equity-owned European cable assets are due for an exit, as the investment horizon is now reaching an end. Some cable dealmakers believe the market would welcome a series of IPOs following the success of this year’s KDG listing and renewed vigour in the cable sector – but others see secondary and tertiary buyouts as more likely. Market sources recently told TelecomFinance that CVC, Carlyle, or Apax might be interested in Kabel BW.
A merger with Unitymedia would come as a surprise given the reluctance of German competition authorities to allow such consolidation deals. Earlier this year, the federal cartel office told heavyweight KDG it may not merge with Kabel BW or Unitymedia.
Mike Fries, chief executive of Liberty Global, was quoted as saying in late November that the German cable market would benefit from further consolidation – adding that Liberty would consider an acquisition of Kabel BW while expressing concerns about the regulatory framework.
