Danish energy and telecoms firm Syd Energi (SE) has announced plans to acquire local cable operator Stofa for an enterprise value of DKK 1.9bn (US$329m).
SE plans to acquire 100% of the group, including the 99% stake held by Swedish private equity firm…
Danish energy and telecoms firm Syd Energi (SE) has announced plans to acquire local cable operator Stofa for an enterprise value of DKK 1.9bn (US$329m).
SE plans to acquire 100% of the group, including the 99% stake held by Swedish private equity firm Ratos, which bought the company in summer 2010.
Ratos said the selling price for 100% of Stofa’s shares amounts to around DKK 1.002bn (US$173m), of which its share of the equity value is approximately DKK 991m (US$171m). The PE firm expects a net gain of roughly SEK 850m (US$126m), resulting in an average annual return of around 55% if measured in SEK.
Susanna Campbell, Ratos’s CEO, said: “Stofa is a fine and well-invested company which we would have gladly owned for a few more years since we have not yet shown its full potential.
“The many measures and investments carried out are expected to provide good earnings development in the years ahead. But since our discussions with SE, which is a very logical buyer, have resulted in them wishing to buy at a price which takes the company’s position and prospects into account, we have agreed to sell.”
Stofa expects to close the deal by the end of the year at the earliest. It is awaiting approval from regulators, as well as SE’s board, which is due to convene on 13 November.
Stofa posted DKK 1.146bn (US$198m) in revenues for 2011, compared with DKK 1.024bn (US$177m) for the corresponding period two years earlier. Its 2011 operating profit was DKK 146m (US$25m), compared with DKK 92m (US$16m) for 2009.
SE provides energy, internet, TV and telephony services in Denmark, and posted 2011 revenues of DKK 2.9bn (US$501m).
