Reports suggesting cableco Com Hem’s owners are considering a sale of the group have resurfaced after a lull since December.
PE firms Carlyle Group and Providence Equity Partners are reportedly in early talks to launch a dual-track process for Com Hem…
Reports suggesting cableco Com Hem’s owners are considering a sale of the group have resurfaced after a lull since December.
PE firms Carlyle Group and Providence Equity Partners are reportedly in early talks to launch a dual-track process for Com Hem this year, prompted by investor appetite for cable assets.
It is understood that Com Hem’s owners were waiting for German cableco Kabel BW’s own sale to be resolved before pressing ahead with its plans.
On 22 March, US media giant Liberty Global announced intentions to buy Germany’s number three cableco for E3.16bn, pending regulatory approval.
TelecomFinance understands that Deutsche Bank and Morgan Stanley will advise Com Hem.
Carlyle and Providence acquired Com Hem in early 2006 for approximately US$1.2bn, and may now be worth E1.4bn-E2bn.
Telcos TeliaSonera, Telenor, TDC, Tele2, Liberty Global and 3 are all widely expected to show interest in the company.
While TeliaSonera would be the most enthusiastic buyer, most doubt that competition authorities would smile upon an incumbent combining with the leading cableco.
However, one Sweden-based analyst told TelecomFinance that Liberty Global was the most likely buyer, ruling out “no appetite” Tele2, “fibre-focused” Telenor and 3 Group, which “hasn’t got the money”.
Com Hem declined to comment.
