Basque banking group Kutxabank is planning to sell part of its majority stake in the regional cable operator Euskaltel, according to a local media report. .
The newspaper Expansion reported that Kutxabank has mandated Citigroup for the sale.
Citing…
Basque banking group Kutxabank is planning to sell part of its majority stake in the regional cable operator Euskaltel, according to a local media report. .
The newspaper Expansion reported that Kutxabank has mandated Citigroup for the sale.
Citing sources close to the process, Expansion reported that Kutxabank’s preferred option would be to integrate Euskaltel with one of two other Spanish regional cable operators: R in Galicia or Telecable in Asturias.
London-based private equity firm CVC Capital Partners holds a majority stake in R, while US PE group Carlyle acquired an 85% stake in Telecable in late 2011.
Expansion has previously suggested that two other PE firms, Apax Partners and Trilantic, may be interested in acquiring a stake in Euskaltel.
The newspaper reported that Kutxabank value Euskaltel between €800m and €1bn. Euskaltel is also reportedly waiting to hear from the courts whether it needs to pay €222m in compensation to its ex-partner Orange.
Kutxabank’s president has said that the intention of the bank is to reduce its 67.56% stake in Euskaltel, at least initially to below 50%. No further details were given.
During the recent reform of Spanish banks, Kutxabank was formed out of three former Basque-based banking entities: BBK, Kutxa and Vital.
Separately, Europa Press reported that the Basque government is also looking to sell its small stake in Euskaltel. The government holds a 2.13% stake in the cable operator through state energy company EVE.
Europa Press referred to sources at the Basque government suggesting that it would not sell its stake cheaply and was waiting for an appealing offer.
Other Euskaltel shareholders include Iberdrola with a 11.85% stake, Endesa (10.64%), EITB (5.32%) and Mondragon Inversiones (2.13%).
Euskaltel provides fixed, internet and digital television services, as well as mobile services through an MVNO.
