A financial investor has expressed its interest in German cable operator Tele Columbus, according to a Reuters report and information received by. TelecomFinance.
Citing people familiar with the matter, Reuters said the buyer was neither BC Partners,…
A financial investor has expressed its interest in German cable operator Tele Columbus, according to a Reuters report and information received by. TelecomFinance.
Citing people familiar with the matter, Reuters said the buyer was neither BC Partners, who recently acquired Swedish cable operator Com Hem, nor EQT, who sold number three German cableco Kabel BW to US media giant Liberty Global, nor CVC, which was rumoured to also be interested in Com Hem.
It is reported that the potential buyer might be instead US PE firm Providence and that the deal value could reach as much as E700m.
From a regulatory point of view, it is unlikely that the Cartel Office would oppose such a deal, because Providence recently sold its remaining 22% stake in Germany’s number one cableco, Kabel Deutschland.
A potential transaction would come a few months after Tele Columbus completed its financial restructuring. At the beginning of the year, Tele Columbus cut about E400m in debt.
Restructuring specialist Nikolaus & Co, which controlled Tele Columbus, handed ownership to Tele Columbus Management.
Following the restructuring, the company said it was now looking to further consolidate in the fragmented German cable market.
Consolidation is already on its way in the industry after Liberty, which owns number two Unitymedia, agreed to acquire Kabel BW for E3.16bn. But the Cartel Office is currently investigating the proposed takeover because of potential antitrust concerns.
