Canadian cableco Cogeco Cable is reportedly looking to sell its Portuguese subsidiary, Cabovisao.
According to a Global Telecom Business report citing Portuguese news agency Lusa, Cogeco is approaching Portuguese and international operators and PE firms…
Canadian cableco Cogeco Cable is reportedly looking to sell its Portuguese subsidiary, Cabovisao.
According to a Global Telecom Business report citing Portuguese news agency Lusa, Cogeco is approaching Portuguese and international operators and PE firms for the Cabovisao sale.
The process reportedly began earlier this year and is now in its advanced stages.
Bloomberg reported last week that Cabovisao’s managing director, Martinho Tojo, had said that consolidation was inevitable in the Portuguese telecoms market, but that his objective was not to sell the company.
Cogeco’s annual report for the year up to the end of August showed that Cabovisao’s operating income before amortisation had declined to C$21m (US$20.3m), down 35.5% from the previous year.
The company said that financial reforms from the Portuguese government are expected to put further downwards pressure on consumer spending capacity.
It also noted net consumer losses in the three months up to the end of August, which were “significantly more important and persistent than expected”.
Cogeco acquired Cabovisao in August 2006 for approximately €465.7m.
Cabovisao provides telephony, television and internet services.
A Cogeco Cable spokeswoman declined to comment.
